India’s Stocks Rise, Posting Biggest Weekly Advance in 17 Years
By Rajhkumar K Shaaw
May 22 (Bloomberg) -- Indian stocks rose, with the benchmark index posting its steepest weekly gain in 17 years, on speculation the ruling party will accelerate economic reforms after its biggest election victory in two decades.
Larsen & Toubro Ltd., India’s largest engineering company, added 5 percent, leading construction stocks higher on expectation infrastructure spending will be boosted to buoy an economy expanding at its slowest pace in six years. Reliance Industries Ltd., the biggest company by market value, gained 3.3 percent.
“The market is expecting the reform process will speed up,” said Naresh Kumar Garg, chief investment officer at Sahara Asset Management Co. in Mumbai, who manages $45 million in assets. He is confident “infrastructure investment will rise” in Prime Minister Manmohan Singh’s second term.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 150.61, or 1.1 percent, to 13,887.15, after swinging between gains and losses at least seven times. The S&P CNX Nifty Index on the National Stock Exchange gained 0.7 percent to 4,238.50. The BSE 200 Index increased 1.1 percent to 1,684.27.
The Sensex’s 14 percent gain this week is its sharpest advance since the week ended March 27, 1992. The measure has risen for 11 consecutive weeks, the longest winning streak since August 2005.
Sterlite Industries (India) Ltd. led declines among metal producers after copper prices fell in London.
‘Modest’ Export Dependence
India’s “modest” dependence on exports will help the economy weather the global recession and recover this year, reducing the need for further stimulus, central bank Governor Duvvuri Subbarao said today.
Larsen and Toubro jumped 5 percent to 1,300.75 rupees. Reliance Industries climbed 3.3 percent to 2,185.75 rupees. NTPC Ltd., the biggest power producer, rose 2.1 percent to 216.60 rupees, its highest in 15 months.
Sterlite lost 4.6 percent to 507.85 rupees. Tata Steel Ltd. dropped 0.6 percent to 363.65 rupees. Copper slumped 2.6 percent and a gauge of six metals in London dropped 3.7 percent, the most since April 20.
The following stocks were among the most active on the exchange:
Tata Motors Ltd. (TTMT IN) fell 3.3 percent to 345.75 rupees. India’s biggest commercial-vehicle maker plans to complete the refinancing of a bridge loan used to buy its Jaguar and Land Rover luxury units by early next week, spokesman Debasis Ray said yesterday.
Airlines: Jet Airways (India) Ltd. (JETIN IN) rose 5.5 percent to 304.40 rupees, Kingfisher Airlines Ltd. (KAIR IN) rose 13 percent to 62.25 rupees and Spicejet Ltd. (SJET IN) jumped 10 percent to 21.71 rupees. The domestic carriers surged on speculation the country’s new government may ease investment rules.
Reliance Capital Ltd. (RCFT IN) added 5.3 percent to 903.30 rupees. The company owned by billionaire Anil Ambani gained on speculation the new government would ease restrictions for overseas investment in the insurance industry.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net.
Last Updated: May 22, 2009 07:09 EDT |
