Indian stocks rise for fifth day, Infosys, metal producers gain
Friday, 11 September 2009
MUMBAI, Sept. 10 (Bloomberg): India's benchmark stock index gained for the fifth day, led by software exporters after Nomura Holdings Inc. raised its rating on the industry. Commodities companies advanced on expectations the nation's demand for steel may rise.
Infosys Technologies Ltd. rose 1.5 per cent. Nomura lifted its outlook on software services stocks, citing positive growth prospects in the US and Europe. Bharti Airtel Ltd. jumped 1.9 per cent on reports it may have reached a merger deal with South Africa's MTN Group Ltd. Tata Steel Ltd. added 1.2 per cent after Steel Minister Virbhadra Singh said domestic consumption of the alloy may surge.
"With the US economy improving, demand for software services is likely to go up," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. in the South Indian city of Kochi. "Also, growth in the Indian economy will see demand for steel and other commodities rising."
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 95.65, or 0.6 per cent, to 16,279.2 at 1:54 p.m. in Mumbai, a 15-month high. The S&P CNX Nifty Index on the National Stock Exchange added 0.8 per cent to 4,851.50. The BSE 200 Index increased 0.8 per cent to 1,996.70.
The Sensex has rallied 4 per cent this month after the Central Statistical Organisation said on Aug. 31 that gross domestic product expanded 6.1 per cent last quarter from a year earlier after a 5.8 per cent rise in the previous quarter.
Infosys, the No. 2 software services provider, rose as much as 2.6 to its highest since February 2007 after Nomura said it was turning "neutral" on the sector given the outlook for growth in the US and Europe, an improvement in IT spending and expanding operating margins. Nomura previously had a "bearish" rating for the industry. The stock added 1.5 per cent to 2,223 rupees.
HCL Technologies Ltd. surged 1.9 per cent to 314.6 rupees. Infosys was raised to "neutral" from "reduce," at Nomura, while HCL Technologies Ltd. was lifted to "buy" from "neutral." Software exporters derive 40 per cent of earnings from the US
Tata Steel gained 1.2 per cent to 466.2 rupees, paring a 2.9 per cent advance after Singh said Indian consumption of the alloy could rise 6 per cent this quarter.
Hindalco Industries Ltd., the largest aluminum producer, rose 1.3 per cent to a year's high of 120.55 rupees. Sterlite Industries (India) Ltd., the No. 1 copper and zinc producer, advanced 2.7 per cent to 767.5 rupees, its highest since June 20, 2008.
Overseas funds bought a net 11.7 billion rupees ($241 million) of Indian stocks on Sept. 8, the Securities and Exchange Board of India said on its Web site. The funds have bought 415.4 billion rupees of the nation's stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.
Bharti Airtel soared 1.5 per cent to 415.3 rupees. India's biggest mobile-phone company and South Africa's MTN Group have reached a $24 billion preliminary agreement to buy each other's shares, the first step in a planned merger, three people familiar with the matter said. Bharti said it remains in discussions with MTN and that the two haven't reached an agreement, according to an e-mailed statement.
Financial companies advanced after HDFC Bank Ltd. and ICICI Bank Ltd. were upgraded at HSBC Finance Corp. ICICI Bank Ltd., the second-biggest lender, jumped 3.9 per cent to a 15-month high of 823 rupees. It was raised to "overweight" from "underweight" at HSBC Finance. HDFC, the No. 3, climbed 0.7 per cent to 1,485 rupees. Its rating was lifted to "overweight" from "neutral".
Jet Airways (India) Ltd., the country's largest carrier by market value, slid 2.5 per cent to 256.3 rupees after it canceled flights for a third consecutive day as an ongoing labor dispute with pilots stranded travelers. The carrier scrapped 90 flights for today "due to continued pilot agitation," according to an e-mailed statement.
Infosys Technologies Ltd. rose 1.5 per cent. Nomura lifted its outlook on software services stocks, citing positive growth prospects in the US and Europe. Bharti Airtel Ltd. jumped 1.9 per cent on reports it may have reached a merger deal with South Africa's MTN Group Ltd. Tata Steel Ltd. added 1.2 per cent after Steel Minister Virbhadra Singh said domestic consumption of the alloy may surge.
"With the US economy improving, demand for software services is likely to go up," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. in the South Indian city of Kochi. "Also, growth in the Indian economy will see demand for steel and other commodities rising."
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 95.65, or 0.6 per cent, to 16,279.2 at 1:54 p.m. in Mumbai, a 15-month high. The S&P CNX Nifty Index on the National Stock Exchange added 0.8 per cent to 4,851.50. The BSE 200 Index increased 0.8 per cent to 1,996.70.
The Sensex has rallied 4 per cent this month after the Central Statistical Organisation said on Aug. 31 that gross domestic product expanded 6.1 per cent last quarter from a year earlier after a 5.8 per cent rise in the previous quarter.
Infosys, the No. 2 software services provider, rose as much as 2.6 to its highest since February 2007 after Nomura said it was turning "neutral" on the sector given the outlook for growth in the US and Europe, an improvement in IT spending and expanding operating margins. Nomura previously had a "bearish" rating for the industry. The stock added 1.5 per cent to 2,223 rupees.
HCL Technologies Ltd. surged 1.9 per cent to 314.6 rupees. Infosys was raised to "neutral" from "reduce," at Nomura, while HCL Technologies Ltd. was lifted to "buy" from "neutral." Software exporters derive 40 per cent of earnings from the US
Tata Steel gained 1.2 per cent to 466.2 rupees, paring a 2.9 per cent advance after Singh said Indian consumption of the alloy could rise 6 per cent this quarter.
Hindalco Industries Ltd., the largest aluminum producer, rose 1.3 per cent to a year's high of 120.55 rupees. Sterlite Industries (India) Ltd., the No. 1 copper and zinc producer, advanced 2.7 per cent to 767.5 rupees, its highest since June 20, 2008.
Overseas funds bought a net 11.7 billion rupees ($241 million) of Indian stocks on Sept. 8, the Securities and Exchange Board of India said on its Web site. The funds have bought 415.4 billion rupees of the nation's stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.
Bharti Airtel soared 1.5 per cent to 415.3 rupees. India's biggest mobile-phone company and South Africa's MTN Group have reached a $24 billion preliminary agreement to buy each other's shares, the first step in a planned merger, three people familiar with the matter said. Bharti said it remains in discussions with MTN and that the two haven't reached an agreement, according to an e-mailed statement.
Financial companies advanced after HDFC Bank Ltd. and ICICI Bank Ltd. were upgraded at HSBC Finance Corp. ICICI Bank Ltd., the second-biggest lender, jumped 3.9 per cent to a 15-month high of 823 rupees. It was raised to "overweight" from "underweight" at HSBC Finance. HDFC, the No. 3, climbed 0.7 per cent to 1,485 rupees. Its rating was lifted to "overweight" from "neutral".
Jet Airways (India) Ltd., the country's largest carrier by market value, slid 2.5 per cent to 256.3 rupees after it canceled flights for a third consecutive day as an ongoing labor dispute with pilots stranded travelers. The carrier scrapped 90 flights for today "due to continued pilot agitation," according to an e-mailed statement.