Indian Stocks Climb to 19-Month High on Reforms, Growth Outlook
By Rajhkumar K Shaaw - Nov 30, 2012
Indian stocks climbed to a 19-month high on optimism the government will extend an economic-policy overhaul to bolster investment after growth slowed last quarter to match a three-year low.
The BSE India Sensitive Index (SENSEX), or Sensex, rose 0.9 percent to 19,339.90 at the close, taking this month’s advance to 4.5 percent. Volumes on the measure were almost triple the 30-day average, data compiled by Bloomberg show. Housing Development Finance Corp. (HDFC), the biggest mortgage lender, extended gains from a record. Bharat Heavy Electricals Ltd. (BHEL) and Jindal Steel & Power Ltd. (JSP) jumped more than 5 percent each.
Data today showed gross domestic product grew 5.3 percent in the three months to Sept. 30 from a year ago, in line with the median of 42 estimates in a Bloomberg survey and down from 5.5 percent in the previous quarter. The government yesterday agreed to opposition demands for a vote on its plan to allow overseas companies to set up supermarkets, paving way for the functioning of parliament after four days of adjournments.
“The market is playing for the next fiscal year and the measures the government is trying to push will bear fruit going forward,” said Shishir Bajpai, senior vice president at IIFL Wealth Management Ltd. in Mumbai. “There is intent from the government on economic reforms.” IIFL has $1.8 billion in stocks under management and advisory.
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