India's Sensex rises for a fourth day
Tuesday, 2 June 2009
MUMBAI June 1 (Bloomberg): India's benchmark stock index rose for a fourth day, extending May's biggest monthly surge in 17 years, led by commodity producers and automakers.
Sterlite Industries (India) Ltd. climbed 3.9 per cent as commodity producers gained on higher metals prices. Hindalco Industries Ltd., the largest aluminum producer, added 2.2 per cent while Tata Steel Ltd. jumped 7.2 per cent. Hero Honda Ltd., India's biggest motorcycle maker, rose 2.5 per cent after it said sales increased in May.
"We expect the market to scale up over the next one year," said Mahesh Patil, who helps manage $2 billion in equities at Birla Sunlife Mutual Fund in Mumbai. "We could see earnings upgrades one or two quarters down the line; that should support the market."
The Bombay Stock Exchange's Sensitive Index, or Sensex, advanced 189.94, or 1.3 per cent, to 14,815.19 at 2:13 a.m. in Mumbai today. The S&P CNX Nifty Index on the National Stock Exchange gained 1.6 per cent to 4,519.40. The BSE 200 Index rose 1.7 per cent to 1,803.73. Nifty futures for June delivery added 1.7 per cent to 4,518.50 at 4:45 p.m. in Singapore.
India's rupee rose to the highest level this year as local share purchases by foreign funds in May exceeded sales by the most in 19 months. Overseas funds bought a net $4.1 billion of Indian shares last month, the most since October 2007, according to data released by the Securities and Exchange Board of India. The Sensex gained 28 per cent in May, the best month since 1992.
Inflows accelerated on speculation the newly elected Congress government, with almost twice as many seats as the main opposition, may reduce barriers to foreign investment in insurers and retailers, plans that had been blocked by former communist allies.
Sterlite rose 3.9 per cent to 647.95 rupees, while Hindalco jumped 2.2 per cent to 86.50 rupees. Tata Steel, India's biggest producer of the alloy, climbed 7.2 per cent to 434.70 rupees after its unit Tata Steel U.K. got approval from lenders to change the terms of its 3.7 billion pound ($6 billion) loan at no increase in interest costs.
Commodities posted the biggest monthly rally in 34 years in May, as the slumping dollar bolstered demand for energy, metals and crops as a hedge against inflation. The Reuters/Jefferies CRB Index of 19 raw materials gained 14 per cent, the most since July 1974. Copper prices rose 2.8 per cent on May 29, capping a 7.3 per cent gain last month.
Hero Honda added 2.5 per cent to 1,370 rupees after increasing sales in May by 22.5 per cent to 382,678 units. Mahindra & Mahindra Ltd., India's biggest maker of sports- utility vehicles, rose 6.4 per cent to 712 rupees after it said it sold more units in May.
NTPC Ltd., India's biggest electricity producer, increased 6.2 per cent to 228.65 rupees after Meera Shankar, India's ambassador to the US, said May 30 in Washington the Manmohan Singh government will speed up implementation of the US-India civil nuclear agreement. "Nuclear energy is a top priority for the Indian government," she said.
Jaiprakash Associates Ltd., India's biggest builder of dams, rose for the fourth day after it informed the exchange a court has approved the merger of four group companies with itself. The stock rose 6.1 per cent to 220.70 rupees.
Indian equities were boosted by a rally in US and Asian stocks. US stocks last week completed a second weekly advance, capping the first three-month gain for the Standard & Poor's 500 Index since its record in 2007.
Asian stocks rose, extending the longest monthly winning streak since the financial crisis began in 2007, as an expansion in Chinese manufacturing for a third month drove commodity prices higher.
Oil & Natural Gas Corp., India's largest oil and gas producer, climbed 0.6 per cent to 1,176.50 rupees.
Crude oil futures in New York climbed as much as 3 per cent $68.29 a barrel in after-hours trading, the highest since Nov. 10. The price advanced 30 per cent in May, the biggest monthly increase since March 1999.
The following were among the most active stocks: Hotels: Indian Hotels Co. (IH IN), the best performer on the Bombay Stock Exchange's 100 Index, led hotel stocks higher on speculation the government will classify them as infrastructure companies subject to lower lending and tax rates.
"The government will push for lower lending rates and tax breaks for all industries that are labor-intensive, which includes hotels, textiles and construction companies," said Jayesh Shroff, who helps manage $5.5 billion in assets at SBI Asset Management Co. in Mumbai.
Sterlite Industries (India) Ltd. climbed 3.9 per cent as commodity producers gained on higher metals prices. Hindalco Industries Ltd., the largest aluminum producer, added 2.2 per cent while Tata Steel Ltd. jumped 7.2 per cent. Hero Honda Ltd., India's biggest motorcycle maker, rose 2.5 per cent after it said sales increased in May.
"We expect the market to scale up over the next one year," said Mahesh Patil, who helps manage $2 billion in equities at Birla Sunlife Mutual Fund in Mumbai. "We could see earnings upgrades one or two quarters down the line; that should support the market."
The Bombay Stock Exchange's Sensitive Index, or Sensex, advanced 189.94, or 1.3 per cent, to 14,815.19 at 2:13 a.m. in Mumbai today. The S&P CNX Nifty Index on the National Stock Exchange gained 1.6 per cent to 4,519.40. The BSE 200 Index rose 1.7 per cent to 1,803.73. Nifty futures for June delivery added 1.7 per cent to 4,518.50 at 4:45 p.m. in Singapore.
India's rupee rose to the highest level this year as local share purchases by foreign funds in May exceeded sales by the most in 19 months. Overseas funds bought a net $4.1 billion of Indian shares last month, the most since October 2007, according to data released by the Securities and Exchange Board of India. The Sensex gained 28 per cent in May, the best month since 1992.
Inflows accelerated on speculation the newly elected Congress government, with almost twice as many seats as the main opposition, may reduce barriers to foreign investment in insurers and retailers, plans that had been blocked by former communist allies.
Sterlite rose 3.9 per cent to 647.95 rupees, while Hindalco jumped 2.2 per cent to 86.50 rupees. Tata Steel, India's biggest producer of the alloy, climbed 7.2 per cent to 434.70 rupees after its unit Tata Steel U.K. got approval from lenders to change the terms of its 3.7 billion pound ($6 billion) loan at no increase in interest costs.
Commodities posted the biggest monthly rally in 34 years in May, as the slumping dollar bolstered demand for energy, metals and crops as a hedge against inflation. The Reuters/Jefferies CRB Index of 19 raw materials gained 14 per cent, the most since July 1974. Copper prices rose 2.8 per cent on May 29, capping a 7.3 per cent gain last month.
Hero Honda added 2.5 per cent to 1,370 rupees after increasing sales in May by 22.5 per cent to 382,678 units. Mahindra & Mahindra Ltd., India's biggest maker of sports- utility vehicles, rose 6.4 per cent to 712 rupees after it said it sold more units in May.
NTPC Ltd., India's biggest electricity producer, increased 6.2 per cent to 228.65 rupees after Meera Shankar, India's ambassador to the US, said May 30 in Washington the Manmohan Singh government will speed up implementation of the US-India civil nuclear agreement. "Nuclear energy is a top priority for the Indian government," she said.
Jaiprakash Associates Ltd., India's biggest builder of dams, rose for the fourth day after it informed the exchange a court has approved the merger of four group companies with itself. The stock rose 6.1 per cent to 220.70 rupees.
Indian equities were boosted by a rally in US and Asian stocks. US stocks last week completed a second weekly advance, capping the first three-month gain for the Standard & Poor's 500 Index since its record in 2007.
Asian stocks rose, extending the longest monthly winning streak since the financial crisis began in 2007, as an expansion in Chinese manufacturing for a third month drove commodity prices higher.
Oil & Natural Gas Corp., India's largest oil and gas producer, climbed 0.6 per cent to 1,176.50 rupees.
Crude oil futures in New York climbed as much as 3 per cent $68.29 a barrel in after-hours trading, the highest since Nov. 10. The price advanced 30 per cent in May, the biggest monthly increase since March 1999.
The following were among the most active stocks: Hotels: Indian Hotels Co. (IH IN), the best performer on the Bombay Stock Exchange's 100 Index, led hotel stocks higher on speculation the government will classify them as infrastructure companies subject to lower lending and tax rates.
"The government will push for lower lending rates and tax breaks for all industries that are labor-intensive, which includes hotels, textiles and construction companies," said Jayesh Shroff, who helps manage $5.5 billion in assets at SBI Asset Management Co. in Mumbai.