* Risk back in favour as Greece avoids early default
* Correction seen due after sharp rally - KRIS
* Reliance recovers after steep fall on Fri
(Updates to close)
By Ami Shah
MUMBAI, July 4 (Reuters) - Indian shares edged 0.3 percent
higher on Monday, tracking world equities as risk appetite
returned after Greece avoided an early default and on signs
China's economy was not heading towards a sharp slowdown, but
traders maintained a cautious view.
Energy major Reliance Industries was among the
biggest gainers, with a 0.8 percent rise, after falling 4.1
percent on Friday.
The retail subsidiary of the conglomerate has appointed two
former Wal-Mart executives to run the operations, the
Economic Times reported on Monday, ahead of an expected opening
up of the retail sector.
The 30-share BSE index firmed 0.28 percent, or
51.68 points, to 18,814.48 points, extending last week's 2.9
percent gain. Nineteen of its components closed in the green.
"We have run the upward course, and a correction looks due,"
said Arun Kejriwal, director of research firm KRIS.
Traders said a revival in foreign fund buying underpinned
India -- one of the world's worst performing major markets this
year-- in the last few sessions, but profit booking could come
"People are waiting for first-quarter results. Any spike on
good news will be used to sell," Kejriwal said.
Investors massively returned to emerging market equity funds
in the week ended June 29 as hopes that Greece would avoid
imminent bankruptcy encouraged risk taking, fund tracker EPFR
Global said on Friday.
Inflows into their funds hit a 12-week high during the week,
after three consecutive weeks of outflows, according to the
Data from Nomura showed foreigners preferred Indian equities
the most in Asia in the week to July 1, and pumped in $1.1
The 50-share NSE index gained 0.4 percent to end at
Gainers thrashed losers in the ratio of 2.1 to 1 on the NSE,
on a volume of 549 million shares, lower than the 90-day daily
average volume of 589 million shares
Top-listed real estate firm DLF jumped 6 percent to
233.60 rupees, after RBS upgraded the stock to "buy" from "sell"
and raised its target price, citing improving cash-flow and a
ramp-up in sale of its non-core assets.
"We believe the worst is over for DLF and expect a gradual
recovery," RBS analysts said in a note late on Friday.
The banking sector index rose 1.1 percent,
attempting to cover up for a poor show so far this year. It is
still down 3.5 percent in 2011.
Leading lenders State Bank of India , ICICI Bank
and HDFC Bank gained between 0.5 percent and
The MSCI all-country world stock index rose
0.4 percent by 1015 GMT, while emerging market equities
firmed 1 percent.
STOCKS THAT MOVED
* Sugar producers, including Shree Renuka Sugars ,
Dhampur Sugar Mills and Bajaj Hindusthan ,
gained between 4.1 and 6.7 percent, after a report the
government may discuss easing restrictions on the sector.
* UltraTech Cement and Jaiprakash Associates
rose 1.5 percent and 1.7 percent, respectively, after
they reported higher June cement shipments.
* Hotel Leelaventures rose 2.4 percent to 41.90
rupees after it said on Saturday it plans to expand its property
in Goa by adding 20 rooms and bring its total to 206 rooms.
TOP 3 MAIN STOCKS BY VOLUME ON NSE
* Lanco Infratech on 23.3 million shares
* Unitech on 17.1 million shares
* DLF on 15.3 million shares
FACTORS TO WATCH
* For technical analysis click on www.reuterstechnicals.net
* India bond report
* India rupee report
* Euro rises to five-week high versus Swiss franc
* Oil steadies on Asia equity, Greek debt concerns weigh
* Stocks at 4-1/2 week high as risk back in favour
* Fireworks wrap up Wall St's best week in 2 years
* For closing rates of Indian ADRs
(Reporting by Ami Shah; Editing by Aradhana Aravindan)
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