29 Nov 2008

Shares up as India market reopens

6:28 am on 29 November 2008

India's stock market has reopened for trading, after being closed on Thursday following the attacks in the business capital of Mumbai.

The Sensex index climbed 66 points, or 0.7%, to close at 9,092.72, having opened more than 1% lower

The BBC reports Mumbai is no stranger to political violence and analysts were sanguine about the impact of the attacks on share values.

Shares in Indian Hotels Co Ltd, which runs the Taj Mahal hotel, fell 17%, buts shares in hotel operator EIH, which operates the Oberoi-Trident hotel, gained 5.2%.

Overall, the attacks have had little impact on wider Asian markets, with the Nikkei index in Japan and Hang Seng index in Hong Kong both rising on Friday.

So far, there is little sign that the attacks will deter investors from the huge potential market that India offers.

But foreign investors have already pulled $US13.5 billion from India since the global financial crisis started. Shares have fallen 55% this year as investors withdrew money.

India's growth rate is forecast at 9% for 2009 and 7% for this year - three times the rate of global expansion and second only to that of China.