Indian Stocks Rise as Tata Consultancy Rebounds, Wipro Advances
Indian stocks rose for the first time in three days as Tata Consultancy Services Ltd. (TCS) rebounded from its biggest loss in more than two years and Wipro (WPRO) Ltd. climbed after reporting higher earnings.
Tata Consultancy rallied 5.7 percent, after dropping 5.8 percent on Jan. 17. Wipro, India’s third-biggest software provider, jumped the most in a month. Reliance Industries Ltd. (RIL), owner of the world’s largest oil refining complex, fell the most in four weeks after operating income dropped.
The S&P BSE Sensex (SENSEX) climbed 0.7 percent to 21,205.05 at the close in Mumbai, following a two-day, 1.1 percent decline. Tata Consultancy plunged last week after sales missed estimates. Wipro’s net income increased 17 percent in the third quarter, the company said, while Reliance Industries said operating income fell 7.4 percent in the three months to Dec. 31.
“We are bullish on the technology sector,” Vaibhav Sanghavi, a director at Ambit Investment Advisors Pvt. in Mumbai, said by telephone today. “We may see increased demand and discretionary spending in developed markets. Indian IT companies will be beneficiaries of that.”
India’s top three technology companies, which get most of their sales from overseas, were among the five largest gainers on the Sensex in 2013 as growth in developed economies and an 11 percent decline in the rupee boosted the outlook for exporters’ earnings.
The CNX Nifty Index (NIFTY) added 0.7 percent to 6,303.95. The India VIX rose 0.4 percent.
Tata Consultancy gained the most since April 24, 2012. Wipro rallied 3.7 percent, the most since Dec. 20, to its highest close since March 2000. Infosys Ltd. increased 0.5 percent, while HCL Technologies Ltd. (HCLT) climbed 3.7 percent to a record.
ITC Ltd. (ITC) rose 1.7 percent to its highest level since Nov. 3. India’s biggest cigarette company’s third-quarter net income rose 17 percent to 23.9 billion rupees, beating estimates, the company said on Jan. 17. State Bank of India, the nation’s biggest lender, added 1.3 percent to 1,641.85 rupees.
Reliance Industries, controlled by billionaire Mukesh Ambani, fell 1.7 percent, the most since Dec. 16. The company reported a drop in operating income, while net income rose to 55.1 billion rupees ($894 million) from 55 billion rupees a year earlier.
Indian Oil Corp., the country’s biggest state-run refiner, slid 0.2 percent, paring an earlier drop of as much as 2.3 percent. The government plans to increase the number of subsidized LPG cylinders per household to 12 from nine, NDTV news channel reported, citing Oil Minister Veerappa Moily. Hindustan Petroleum Corp. declined 1.3 percent.
Global investors bought a net $91 million of local shares on Jan. 16, data from the regulator show. They invested $20 billion last year, the most in Asia after Japan, according to data compiled by Bloomberg.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at email@example.com