Mittal deal scripts Sensex turnaround

Top private steel maker Tata Steel rose 4.7% to Rs 512.25, while state-run Steel Authority of India gained 6.7% to Rs 79.25. ‘‘Once Mittal’s merger deal is through, it will be a big boost for steel firms,’’ said Arun Kejriwal, strategist at research firm KRIS, adding such a big merger would increase steel firms’ pricing power.

Rise in the BSE index was led by heavyweight Reliance Industries, which rose nearly 4% to Rs 1,011.95 ahead of its annual meeting of shareholders on Tuesday.

Indian shares have fallen after peaking on May 11 as global investors pulled out from emerging markets on expectations that higher interest rates and a possible slowdown in the US would hurt earnings growth. The main index has pulled up from a six-month low set last week and foreign funds have largely been net buyers of shares since then, although they sold a net $44 million on Thursday. Their investment now stands at about $2.6 billion for the year compared with nearly $5 billion in early May.

Most Asian markets were lower on speculation the US Federal Reserve may raise its benchmark interest rate next week by as much as 50 basis points.