Sensex Advances for Second Day on ECB, Government Action
Indian stocks rose to the highest in almost a month on optimism the government will take measure to boost economic growth when parliament resumes this week, and as Germany backed the European Central Bank’s bond-buying plan.
Tata Consultancy Services Ltd. (TCS), the largest software exporter, paced gains among peers after Cognizant Technology Solutions Corp. raised its profit forecast and beat last quarter’s estimates. Tata Motors Ltd. (TTMT), the owner of luxury car brands Jaguar and Land Rover, rallied 4.2 percent, and ICICI Bank Ltd. (ICICIBC), the largest private lender, climbed 1.9 percent.
The BSE India Sensitive Index (SENSEX), or Sensex, advanced 1 percent to 17,590.95, according to preliminary closing prices at 3:30 p.m. in Mumbai, the highest level since July 10. German Chancellor Angela Merkel’s government supported the ECB’s bond- buying plan announced last week, a spokesman said, easing concerns the latest measures to contain the debt crisis may fail to calm euro-area turmoil. The European Union took in 17 percent of India’s shipments in the April-to-September period last year, according to the commerce ministry.
Indian parliament resumes this week as the government bids to end two years of policy gridlock to bolster economic growth amid Europe’s crisis and elevated domestic inflation. India’s economy expanded 5.3 percent in the March quarter, the weakest pace in almost a decade.
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