Mumbai: Indian shares erased an early fall and climbed 0.7% on Wednesday as investors covered their short positions ahead of the monthly derivatives expiry, but the market undertone was weak due to a delay in monsoon.
Larsen & Toubro, which lost nearly a tenth of its value in the last two weeks, led the gains on speculation the engineering and construction firm would benefit from expected higher spending on infrastructure.
The government’s annual budget on 6 July is expected to spell out bold plans to improve overburdened roads, ports and other infrastructure to help boost growth.
However, annual monsoon rains, which are a lifeline for the country’s trillion dollar economy, have weakened and are expected to be below normal, the government said on Wednesday.
Posted by Mary Gayen on Thursday, June 25, 2009 at 10:34 am
Filed under Markets, Sensex · Tagged budget, infrastructure, L&T, Sensex
