India’s stocks rose the most in ten months on speculation an emergency package to bail out debt- laden European countries will contain the region’s credit crisis.
Reliance Industries Ltd., the nation’s most valuable company, climbed the most in more than four months. Tata Motors Ltd., the owner of Jaguar Land Rover, advanced for the first time in six days. The European Central Bank said it will intervene in bond markets in an effort to help stave off a sovereign-debt crisis.
“There is some relief among investors,” said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. in Kochi. “The bailout package has given a lot of support to the financial markets.” Mathews predicted banks, automotive and metals companies would lead gains today.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, gained 561.44, or 3.4 percent, to 17,330.55, its biggest gain since July 17. The gauge declined 4.5 percent last week, its worst weekly performance in more than six months. The S&P CNX Nifty Index on the National Stock Exchange rose 3.5 percent to 5,193.60. The BSE 200 Index increased 3.1 percent to 2,193.52.
Reliance Industries advanced 5.2 percent to 1,079.4 rupees on the National Stock Exchange. Reliance Infrastructure Ltd., the builder of a mass rapid transit system in Mumbai, jumped 8.8 percent to 1,064.65 rupees. DLF Ltd., the nation’s biggest developer, soared 7 percent to 304.5 rupees.
Governments of the 16 euro nations today agreed to lend as much as 750 billion euros ($962 billion) to countries under attack from speculators. The European Central Bank said it will counter “severe tensions” in “certain” markets by purchasing government and private debt. Concerns that the Greek financial crisis will spread wiped $3.7 trillion from the value of global stock markets last week.
“It takes away the initial investor concern that the European Union was doing nothing,” said Andrew Holland, chief executive officer of equities at Ambit Capital Pvt. in Mumbai. “Now they have done something, we will see a relief rally.”
Tata Motors, India’s biggest truckmaker and maker of the cheapest car in the world, climbed 6.7 percent to 813.6 rupees.
India’s car sales in April rose 40 percent to 143,976 units, the Society of Indian Automobile Manufacturers said in New Delhi today.
Maruti Suzuki India Ltd., the maker of half the cars sold in India, gained 1.3 percent to 1,295.45 rupees. Mahindra & Mahindra Ltd., the largest maker of sport-utility vehicles and tractors, surged 5.7 percent to 553.65 rupees. Bajaj Auto Ltd., the nation’s No. 2 motorcycle maker, rose 3.1 percent to 2,121.4 rupees.
Sterlite Industries (India) Ltd., the largest copper and zinc producer, rose 5.9 percent to 755.75 rupees. The stock declined 14 percent last week. Copper rose from the lowest level in 12 weeks. The price of copper for delivery in three months climbed as much as 3.3 percent on the London Metal Exchange. Separately, Sterlite’s parent Vendanta Resources Plc, agreed to pay Anglo American Plc $1.34 billion for zinc mines in Africa and Ireland.
Hindalco Industries Ltd., the biggest aluminum producer, jumped 7.6 percent to 175.45 rupees, paring last week’s 8.7 percent decline. Aluminum prices in London climbed 3.2 percent.
Tata Steel Ltd., the biggest producer of the alloy, soared 7.7 percent to 601.45 rupees.
India’s $1.2 trillion economy is likely to expand 8.5 percent in the current fiscal year that started April 1, after a 7.2 percent gain in the previous year, Finance Minister Pranab Mukherjee said April 28.
Talwalkars Better Value Fitness Ltd., a gym operator, surged 27 percent to 163.15 rupees in its Mumbai trading debut after demand for the initial public offer exceeded stock on sale by 28.4 times. The operator of 58 gyms in 28 Indian cities raised 774 million rupees ($17.2 million) selling 6.05 million shares at 128 rupees apiece last month.
“It continues to be a domestic consumption story in India, Holland said. “The finance minister has opened people’s purse strings after the budget and now that will be the driver of the economy.” He advises investors to buy shares of carmakers, automotive part-makers, airlines, hotels and retail companies as they are likely to benefit as consumption increases.
India’s rupee jumped 1.3 percent against the dollar, the most since October.
Infosys Technologies Ltd., the second-largest software services provider, gained 2.3 percent to 2,675.7 rupees, while larger rival Tata Consultancy Services Ltd. rose 3.9 percent to 770.25 rupees. Wipro Ltd., the third-biggest, surged 5.4 percent to 672.3 rupees. Indian software exporters get at least a fifth of their revenue from Europe.
Overseas investors sold a net 13.9 billion rupees of Indian equities on May 5, paring their total purchases of stocks this year to 290.2 billion rupees, according to the nation’s market regulator.
Inflows from overseas reached a record 834.2 billion rupees in 2009, exceeding the high set two years earlier in domestic currency terms, as the biggest rally in 18 years lured foreign funds. They sold a record 529.9 billion rupees of shares in 2008, triggering a record annual decline.
The following were among the most active on the exchange:
Vijaya Bank Ltd. (VJYBK IN) gained 2.8 percent to 56.1 rupees. Four Indian state-run banks will probably get 15 billion rupees as part of their recapitalization, the Press Trust of India reported, citing unidentified people that it didn’t identify. The government may give Vijaya Bank 7 billion rupees, while UCO Bank (UCO IN) may get 3 billion rupees. Central Bank of India (CBOI IN) and United Bank of India (UNTDB IN) may get 2.5 billion rupees each, the news agency said. No timeframe was given in the report.
Uco climbed 2.8 percent to 72.25 rupees. Central Bank rose 0.6 percent to 148.3 rupees, while United Bank advanced 2.1 percent to 81.3 rupees.
Cipla Ltd. (CIPLA IN), India’s second-biggest drugmaker by market value, sank 6.7 percent to 319 rupees, the most in almost a year. The company’s May 7 revenue forecast failed to meet expectations, said Abhishek Singhal, an analyst at Macquarie Securities Ltd. who rates the stock as “underperform.”
FIEM Industries Ltd. (FIEM IN) soared 13 percent to a record 133.6 rupees. The auto-parts maker’s quarterly profit surged to 33.3 million rupees from 1.44 million rupees a year earlier.
Jubilant Organosys Ltd. (JOL IN) rose 2.4 percent to 343.9 rupees. The drugmaker’s fourth-quarter profit climbed to 1.37 billion rupees from 123.7 million rupees a year earlier.
LIC Housing Finance Ltd. (LICHF IN) jumped 4.7 percent to 953.1 rupees. The mortgage lender controlled by India’s biggest life insurer is planning to enter the banking business, the Hindustan Times newspaper reported, citing Chief Executive Officer R.R. Nair. Separately, the Economic Times reported LIC Housing is planning to raise 200 billion rupees. Nair wasn’t immediately available to comment when called at his office.
MMTC Ltd. (MMTC IN) climbed 2.3 percent to 30,750.65 rupees. The state-run trading company expects sales will increase to 1 trillion rupees in three years, from 450 billion rupees now, the Hindu Business Line reported, citing Chairman Sanjiv Batra. Batra couldn’t immediately be reached at his office telephone for comment on the report.
PVR Ltd. (PVRL IN) advanced 1 percent to 161.75
rupees. The movie operator plan to add 150 screens in the next two years, the Economic Times reported, citing Chairman Ajay Bijli. Bijli couldn’t immediately be reached at his office telephone for comment on the report.
Torrent Power Ltd. (TPW IN) surged 7.4 percent to 331.55 rupees. The power generation and distribution company’s fourth-quarter profit doubled to 2.9 billion rupees.
Triveni Engineering & Industries Ltd. (TRE IN) climbed 4.6 percent to 108.8 rupees. The maker of mechanical equipment said the company will list its Triveni Turbine unit on local exchanges by the end of 2010, the Press Trust of India reported, citing Chairman Dhruv Sawhney.
Unichem Laboratories Ltd. (UL IN) climbed 1.3 percent to 398.3 rupees. The drumaker’s net income rose 20 percent to 338.8 million rupees in the fourth quarter ended March 31.