India's stocks rose to the highest level in more than three months amid expectations company earnings growth will benefit as the economic expansion quickens.
Tata Motors Ltd., the nation's biggest truckmaker, gained 2.5 percent. Infosys Technologies Ltd., a software exporter, advanced ahead of its quarterly earnings report due tomorrow.
The Bombay Stock Exchange's Sensitive Index, or Sensex, advanced 103.66, or 0.6 percent, to 17,937.20. The measure climbed for a third day after the International Monetary Fund said India's economy may expand this year at the fastest pace since 2007. The gauge pared a gain of as much as 1 percent after a report showed May factory output grew at a slower pace than predicted by economists.
"We are confident that the gross domestic product growth and corporate earnings numbers will surprise on the upside," said Deven Choksey, chief executive officer at K.R. Choksey Shares & Securities in Mumbai, who manages about $123 million. "The industrial production numbers are not that bad." Choksey expects earnings of India's largest companies to climb about 22 percent in the June quarter.
The S&P CNX Nifty Index on the National Stock Exchange rose 0.6 percent to 5,383. The BSE 200 Index increased 0.4 percent to 2,278.45.
Tata Motors climbed 2.5 percent to 790.15 rupees. Bharat Heavy Electricals Ltd., the biggest power-equipment maker, advanced 2.1 percent to 2,444.25 rupees.
Factory Output
Output at factories, utilities and mines rose 11.5 percent in May from a year earlier after a revised 16.5 percent gain in April, the statistics office said in a statement in New Delhi. The median of 23 estimates in a Bloomberg News survey was for a 16.2 percent increase.
Infosys, the second-biggest software exporter, gained 0.8 percent to 2,895.9 rupees, while larger rival Tata Consultancy Services Ltd. added 2.2 percent to 791.7 rupees. Choksey expects Infosys to raise its earnings outlook tomorrow. The company will be the first of India's largest to report earnings for the three months through June.
Idea Cellular Ltd., India's third-largest mobile- telecommunications company by market value, added 5.1 percent to 70.1 rupees, the highest close in nine months. The stock was raised to "buy" from "sell" by Goldman Sachs Group Inc. analysts led by Sachin Salgaonkar, who cited continued "strong" revenue and earnings growth, the end of an overhang from high-speed wireless expenses and the relative performance and valuation of the stock.
Fund Flows
Overseas funds bought a net 11.9 billion rupees ($254 million) of Indian equities on July 8, increasing total investments in the stocks this year to 327.7 billion rupees, according to the nation's market regulator.
Inflows from overseas reached a record 834.2 billion rupees in 2009, exceeding the high set two years ago in local currency terms, as the biggest advance in 18 years lured foreign funds. They sold a record 529.9 billion rupees of shares in 2008, triggering a record annual decline.
The following were among the most active on the exchange:
Aurobindo Pharma Ltd. (ARBP IN) gained 1.3 percent to 953.95 rupees. The drug company was rated "outperform" by analysts at First Global, which re-initiated coverage of the stock on July 9.
Housing Development Finance Corp. (HDFC IN) rose 1.3 percent to 3,003.35 rupees. India's third-largest lender by market value bought 4.03 million shares of Credila Financial Services Pvt. for 40.3 million rupees in cash, raising its stake in the company to 51 percent, according to a July 9 statement on the Bombay Stock Exchange.
Ipca Laboratories Ltd. (IPCA IN) advanced 2.4 percent to 303.5 rupees. The drugmaker had 2.8 percent of equity, or 3.5 million shares of the company traded in four transactions in Mumbai, data on the Bloomberg showed.
Jaypee Infratech Ltd. (JPIN IN) gained 2 percent to 88.5 rupees. The unit of India's biggest builder of dams reported first-quarter profit of 3.95 billion rupees.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.
Happy Trading,
United we grow!!!
No comments:
Post a Comment