India’s Key Stock Index Jumps Most Since December, Led by Banks
By Pratik Parija and Saikat Chatterjee
March 13 (Bloomberg) -- Indian stocks climbed the most since December, led by financial companies, after Bank of America Corp. said it’s profitable and Japan and China signaled they will increase efforts to bolster growth.
ICICI Bank Ltd., the country’s second-biggest lender, surged more than 8 percent for a second day to its biggest weekly advance in twelve. The bigger rival, State Bank of India, climbed 4.6 percent. Asian financial stocks had their best week since Dec. 19 as Bank of America joined JPMorgan Chase & Co. and Citigroup Inc. in saying January and February were profitable.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 412.86, or 5 percent, to 8,756.61, at the 3:30 p.m. local-time close, the biggest gain since Dec. 10. The measure rose 5.2 percent this week, the most in six. The S&P CNX Nifty Index on the National Stock Exchange added 3.9 percent to 2,719.25. The BSE 200 Index advanced 4.3 percent to 1,023.70. S&P Nifty futures for March delivery rose 4.6 percent to 2,720.50.
“The market is getting support from banks,” said Shashank Khade, who helps manage $400 million at Kotak Securities Ltd. in Mumbai. “Indian banks had gone down substantially in terms of valuations and they are recovering now.”
Global Crisis
The global financial crisis has caused writedowns and losses at institutions worldwide to swell to more than $1.2 trillion.
ICICI Bank rose 8.6 percent to 308.65 rupees, after surging 8.1 percent yesterday. State Bank of India rose by the most in more than a month to 953.05 rupees. HDFC Bank Ltd., the country’s third-biggest lender by market value, rose 4.5 percent to 834.25 rupees. Housing Development Finance Corp., the biggest mortgage lender in India, rose 6.8 percent to 1,377.50 rupees.
Reliance Industries Ltd. surged after a report that the company may start producing gas from its biggest field next month. The stock rose 6.8 percent to 1,284.25 rupees.
The company, which is poised to become the nation’s largest refiner, may start producing gas from its biggest field off India’s east coast by mid-April, the Business Standard reported, citing a company official it didn’t name.
Tata, Infosys
Indian software exporters, which get about half their revenue from the U.S., gained for the second day as prospects for banks brightened in the world’s biggest economy. Tata Consultancy Services Ltd., the country’s biggest software services exporter, rose 6.2 percent to 506.85 rupees. Infosys Technologies Ltd., the second biggest, advanced 5.6 percent to 1,297.05 rupees. Wipro Ltd., the third biggest, gained 6.1 percent to 224.90 rupees.
Governments from the U.S. to Japan and China have stepped up efforts to avert what the World Bank predicts will be the first global economic contraction since World War II. Prime Minister Taro Aso ordered a third spending plan aimed at easing Japan’s recession.
China can add “at any time” to 4 trillion yuan ($585 billion) of stimulus measures to revive the world’s third-biggest economy, Premier Wen Jiabao told reporters in Beijing. He reaffirmed China’s target for 8 percent growth in 2009.
Overseas investors bought a net 120 million rupees ($2.2 million) of Indian stocks on March 9, according to the nation’s market regulator.
Cairn India Ltd. (CAIR IN) rose 4 percent to 170.10 rupees. The unit of the U.K. energy explorer Cairn Energy Plc plans to spend as much as $1.8 billion in 2010 and 2011 to produce crude oil from its field in Rajasthan, Chief Executive Officer Rahul Dhir said.
Dr. Reddy’s Laboratories Ltd. (DRRD IN) gained 3.6 percent to 412.50 rupees. The drugmaker won a U.S. court ruling that bolsters its bid to sell a copy of AstraZeneca Plc’s Prilosec heartburn drug without a prescription. U.S. District Judge Colleen McMahon in New York ruled that Dr. Reddy’s version of the drug wouldn’t infringe two AstraZeneca patents related to omeprazole, the active ingredient in Prilosec.
Satyam Computer Services Ltd. (SCS IN) fell 3.3 percent to 45.5 rupees. The Indian software maker has received interest from at least eight potential bidders, the Economic Times of India reported, citing a person close to the development.
Tata Steel Ltd. (TATA IN) rose 7.1 percent to 167 rupees. The nation’s biggest steelmaker has held informal talks with bankers on restructuring debt at its Corus Group Ltd. unit, the Financial Times reported, citing people familiar with the situation. The parent may ask its U.K. business, which owns Corus, to amend covenants on about 3 billion pounds ($4.2 billion) in loans for the acquisition, the report said.
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