Indian stocks rose, paring a monthly loss, as software exporters gained after the benchmark gauge for U.S. equities capped the best week in a month.
Tata Consultancy Services Ltd. (TCS), India’s largest software maker, advanced to a two-month high. Infosys Ltd. (INFO), the second biggest, rose to a two-week high. The two companies earn more than half their revenues from North America, data compiled by Bloomberg show. The Standard and Poor’s 500 Index climbed 1.8 percent last week, the most since March 16, as company earnings exceeded forecasts.
The BSE India Sensitive Index (SENSEX), or Sensex, rose 0.7 percent to 17,311.88, according to preliminary closing prices at 3:30 p.m. in Mumbai. The gauge is still poised for a second straight monthly loss. Tata Consultancy Services trades at 19.1 times future earnings, while Infosys is valued 15 times, compared with a multiple of 15.9 times on the BSE IT Index of 10 software makers, data compiled by Bloomberg show.
The Sensex has risen 12 percent this year as foreign funds pumped $8.72 billion into local stocks on optimism the central bank would ease monetary policy after a record tightening in funding costs slowed economic growth, eroded company profits and as rifts within Prime Minister Manmohan Singh’s coalition led to a policy deadlock.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at firstname.lastname@example.org
To contact the editor responsible for this story: Darren Boey at email@example.com