Indian Stocks Advance to Seven-Month High; Sterlite, ICICI Gain
By Pooja Thakur
May 4 (Bloomberg) -- Indian stocks rose, driving the benchmark index to a seven-month high. Sterlite Industries (India) Ltd. led commodity producers higher after manufacturing in China expanded for the first time in nine months.
Sterlite, the nation’s largest copper producer, added 11 percent on increased optimism of a revival in demand by the world largest consumer of metals. Stocks also advanced after overseas investors bought $1.3 billion in Indian equities in April, the most in 18 months. ICICI Bank Ltd., the nation’s second-largest lender, added 6 percent.
“Investments into equities has increased as risk aversion is receding,” said Ajay Bodke, who helps manage about $2.7 billion in assets at IDFC Asset Management Co. in Mumbai. “The Chinese manufacturing data is giving a boost to commodity stocks on optimism of a recovery in demand,”
The Bombay Stock Exchange’s Sensitive Index, or Sensex, climbed 4.7 percent to 11,938.98 as of 12:00 p.m. local time, set for its highest since Oct. 3. The S&P CNX Nifty Index on the National Stock Exchange gained 4.1 percent to 3,617.50. The BSE 200 Index advanced 4.2 percent to 1,395.16. Nifty futures for May delivery added 4.1 percent to 3,626.15.
Sterlite added 11 percent to 455 rupees. Hindalco Industries Ltd., the country’s largest aluminum maker, rose 8.5 percent to 58.30 rupees. Tata Steel Ltd., India’s biggest producer of the alloy, climbed 8.8 percent to 259.05 rupees.
A China purchasing manager’s index rose to a seasonally adjusted 53.5 in April from 52.4 in March, according to a May 1 statement from the Federation of Logistics and Purchasing. A reading above 50 indicates an expansion.
Foreign Buying
Overseas investors bought stocks worth 65.08 billion rupees ($1.3 billion) in April, the most since October 2007, according to the nation’s market regulator.
ICICI gained 6.1 percent to 508.35 rupees. State Bank of India, the country’s largest lender, added 5.9 percent to 1354 rupees. Tata Consultancy Services Ltd., India’s biggest software developer, gained 8.5 percent to 676.75 rupees.
The following shares were among the most active on the exchange:
Housing Development Finance Corp. (HDFC IN) climbed 9.5 percent to 1,891.55 rupees. The nation’s biggest mortgage lender may say profit in the quarter ended March 31 fell 18 percent to 6.3 billion rupees, according to the median estimate of analysts surveyed by Bloomberg News. The earnings are expected today.
Maruti Suzuki India Ltd. (MSIL IN) rose 3.7 percent to 844.10 rupees. The maker of half the cars sold in India said it sold a total 71,748 vehicles in April, compared with 62,336 a year earlier.
Mahindra & Mahindra Ltd. (MM IN) advanced 5.8 percent to 516.15 rupees. India’s biggest maker of sport-utility vehicles said domestic sales of vehicles in April rose 17 percent to 22,617 units.
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