Techs lead Indian shares up on Wall Street rebound

MUMBAI: By midmorning the 30-issue benchmark Bombay share index was up 0.62 percent at 3,160.01 points. Gainers outnumbered losers 235 to 80 in brisk trade of 6.7 million shares.

The broader National exchange index was up 0.6 percent. "It appears to be a technical pullback. It is not clear whether the trend will sustain," said Ketan Dedhia, managing director of brokerage Nalanda Securities.

Recent volatility in tech stocks had reignited appetite for old economy stocks, he said. Infosys Technologies, the nation's No 2 software services exporter, rose 1.15 percent to 4,315 rupees, after falling 3.2 percent in the past two days.

Satyam Computer Services, the fourth-biggest exporter, climbed 1.6 percent to 205.75 rupees after dropping more than four percent in the past two trading days.

The tech-laden Nasdaq Composite index rose 1.55 percent on Tuesday as Wall Street shares ended broadly higher on reports of an uprising against Iraqi President Saddam Hussein's forces in the southern city of Basra.

Technology stocks have come under pressure this year on fears that a prolonged Iraq war could affect their export-order business. Many analysts fear that a long war could delay decision-making by leading companies across the world and reduce their spending on technology.

New York Stock Exchange-listed Dr Reddy's Laboratories gained 0.54 percent to 905 rupees after it said it had filed an application with the U.S. Food and Administration to market a generic version of Aventis Pharmaceuticals' anti-allergy drug Allerga.

Private sector IDBI Bank gained 2.7 percent to 21.05 rupees on a report in The Times of India daily which said that six banks have shown interest in picking up stake in it.

IDBI Bank officials could not be reached immediately for a comment.

Broad market sentiment was also be supported by a recent pick up in foreign inflows.

Offshore funds bought Indian equities for a net $68 million in the four days to Monday after selling shares worth $34.7 million in the previous three days.

(C) Reuters