Indian Stocks Rise Most in a Week on Pledge to Narrow Deficit

India’s stocks rose the most in a week as the government pledged to trim its budget shortfall, boost spending on projects needed to sustain growth and give the nation’s poorest cash to buy fuel to shield them from inflation.

State Bank of India Ltd., the biggest lender, advanced 1.9 percent. India will narrow its deficit to 4.6 percent of gross domestic product in the year to March 2012, Finance Minister Pranab Mukherjee said in his annual budget speech in parliament today. Larsen & Toubro Ltd., the largest engineering company, gained for the first day in five. Spending on roads, ports and other large projects will be increased by 23 percent in the year from April, he said.