Indian stocks rallied, with the benchmark index posting its biggest weekly gain in 20 months, as speculation that global economic recovery will be sustained spurred gains in equities across Asia. Software makers jumped.
Infosys Technologies Ltd., the nation’s second-largest software-services provider, climbed 5.3 percent, the most since July 2009. Asian stocks increased, tracking a rally in U.S. equities, after U.S. initial jobless claims data signaled the labor market in the largest economy is mending. Wipro Ltd., the third-biggest, advanced 3.7 percent. Tata Consultancy Services Ltd., the largest, added 2.4 percent.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, surged 464.90, or 2.5 percent, to 18,815.64 at the 3:30 p.m. close in Mumbai, the highest level in two months. The guage jumped 5.2 percent this week, the most since the period ended July 17, 2009. The S&P CNX Nifty Index on the National Stock Exchange rose 2.4 percent to 5,654.25. The BSE 200 Index increased 2 percent to 2,310.58.
“Investors are expecting Indian software companies to benefit from the recovery in the U.S. economy,” R.K. Gupta, managing director of Taurus Asset Management Ltd., said by phone from New Delhi. India’s biggest software exporters get about half of their revenue from the U.S.
Regional Gains
Asian equities rose, with the region’s benchmark MSCI Asia Pacific Index posting its biggest weekly gain since November. The U.S. Labor Department figures showed the number of Americans filing applications for unemployment benefits fell 5,000 to 382,000 last week. Data on the economy, consumption and consumer confidence are due today.
Technology exporters across Asia rallied after forecasts at Oracle Corp., the U.S.-based supplier of database software, and Accenture Plc, the second-largest technology-consulting company, topped analyst estimates.
Infosys climbed 5.3 percent to 3,163.05 rupees. Wipro rose 3.7 percent to 455.9 rupees, the most in more than a month, while Tata Consultancy added 2.4 percent to 1,119.65 rupees.
“It’s a sentimental reaction on hope that the Indian software firms will get more orders,” said Ambareesh Baliga, chief operating officer of Way2Wealth Securities.
The Sensex is the world’s worst-performer this year after benchmark indexes Egypt, Tunisia and Kuwait, as concerns that rising interest rates will crimp economic growth and corporate earnings have dragged stocks lower. Companies on the Sensex trade at an average 17.7 times estimated earnings, compared with 21.5 times in March 2010, after the gauge dropped 8.3 percent this year, according to data compiled by Bloomberg.
‘Attractive Valuations’
“Money waiting on the sidelines is now finding its way into Indian stocks as valuations have come down to attractive levels,” Mumbai-based Prateek Agrawal, head of equity at Bharti AXA Investment Managers Pvt. which managed 4.12 billion rupees ($92.3 million) in assets at the end of December, said by phone. He favors shares of “large-cap software” companies, lenders and automakers.
DLF Ltd., the nation’s biggest real estate developer, rallied 6.4 percent to 249.1 rupees, the steepest gain among Sensex stocks. Larsen & Toubro Ltd., the country’s biggest engineering company, gained 3.1 percent to 1598.4 rupees.
Overseas funds bought a net 3.93 billion rupees ($87.5 million) of Indian stocks on March 23, paring their outflow from equities this year to 73.9 billion rupees, according to the website of the Securities and Exchange Board of India.
India’s economic expansion and corporate earnings lured foreign investors to purchase a record $29.4 billion of local equities last year and made the Sensex the best performer and most expensive among the world’s 10 biggest markets.
Source: http://www.businessweek.com
Infosys Technologies Ltd., the nation’s second-largest software-services provider, climbed 5.3 percent, the most since July 2009. Asian stocks increased, tracking a rally in U.S. equities, after U.S. initial jobless claims data signaled the labor market in the largest economy is mending. Wipro Ltd., the third-biggest, advanced 3.7 percent. Tata Consultancy Services Ltd., the largest, added 2.4 percent.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, surged 464.90, or 2.5 percent, to 18,815.64 at the 3:30 p.m. close in Mumbai, the highest level in two months. The guage jumped 5.2 percent this week, the most since the period ended July 17, 2009. The S&P CNX Nifty Index on the National Stock Exchange rose 2.4 percent to 5,654.25. The BSE 200 Index increased 2 percent to 2,310.58.
“Investors are expecting Indian software companies to benefit from the recovery in the U.S. economy,” R.K. Gupta, managing director of Taurus Asset Management Ltd., said by phone from New Delhi. India’s biggest software exporters get about half of their revenue from the U.S.
Regional Gains
Asian equities rose, with the region’s benchmark MSCI Asia Pacific Index posting its biggest weekly gain since November. The U.S. Labor Department figures showed the number of Americans filing applications for unemployment benefits fell 5,000 to 382,000 last week. Data on the economy, consumption and consumer confidence are due today.
Technology exporters across Asia rallied after forecasts at Oracle Corp., the U.S.-based supplier of database software, and Accenture Plc, the second-largest technology-consulting company, topped analyst estimates.
Infosys climbed 5.3 percent to 3,163.05 rupees. Wipro rose 3.7 percent to 455.9 rupees, the most in more than a month, while Tata Consultancy added 2.4 percent to 1,119.65 rupees.
“It’s a sentimental reaction on hope that the Indian software firms will get more orders,” said Ambareesh Baliga, chief operating officer of Way2Wealth Securities.
The Sensex is the world’s worst-performer this year after benchmark indexes Egypt, Tunisia and Kuwait, as concerns that rising interest rates will crimp economic growth and corporate earnings have dragged stocks lower. Companies on the Sensex trade at an average 17.7 times estimated earnings, compared with 21.5 times in March 2010, after the gauge dropped 8.3 percent this year, according to data compiled by Bloomberg.
‘Attractive Valuations’
“Money waiting on the sidelines is now finding its way into Indian stocks as valuations have come down to attractive levels,” Mumbai-based Prateek Agrawal, head of equity at Bharti AXA Investment Managers Pvt. which managed 4.12 billion rupees ($92.3 million) in assets at the end of December, said by phone. He favors shares of “large-cap software” companies, lenders and automakers.
DLF Ltd., the nation’s biggest real estate developer, rallied 6.4 percent to 249.1 rupees, the steepest gain among Sensex stocks. Larsen & Toubro Ltd., the country’s biggest engineering company, gained 3.1 percent to 1598.4 rupees.
Overseas funds bought a net 3.93 billion rupees ($87.5 million) of Indian stocks on March 23, paring their outflow from equities this year to 73.9 billion rupees, according to the website of the Securities and Exchange Board of India.
India’s economic expansion and corporate earnings lured foreign investors to purchase a record $29.4 billion of local equities last year and made the Sensex the best performer and most expensive among the world’s 10 biggest markets.
Source: http://www.businessweek.com
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