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| Corporate earnings outlook pushes Sensex up 107 points |
| Bloomberg / Sep 09, 2009, 00:44 IST |
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India’s benchmark stock index rose to a 15-month high on optimism an economic revival would boost corporate earnings and as a government official said domestic demand was recovering.
Sterlite Industries (India) Ltd, India’s biggest copper producer, climbed to its highest in 15 months following a gain in the metal’s price. Hero Honda Motors Ltd, the largest motorcycle maker, added 2.2 per cent on comments by the chief executive officer of the second-largest bank that housing and auto loans are recovering. State Bank of India rose 4.5 per cent after its chairman said he expected profits to jump.
“We expect companies to report higher profits in the September quarter compared to the last quarter,” said Satish Ramanathan, who helps manage $1.6 billion in equities at Sundaram BNP Paribas Asset Management Co in Chennai.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, advanced 107.35, or 0.7 per cent, to 16,123.67, its highest since May 30, 2008. The S&P CNX Nifty Index on the National Stock Exchange added 0.5 per cent to 4,805.25. The BSE 200 Index rose 0.3 per cent to 1,979.6.
Oil India Ltd, the nation’s second-biggest state-run energy explorer, received bids for 37.3 million shares, 1.41 times more than the 26.4 million shares on offer since yesterday, the National Stock Exchange Web site showed. The shares are being offered at Rs 950-1,050 apiece.
Overseas Investors
Foreign investors are returning to India amid signs of a recovery in domestic demand, minister of state for finance Namo Narain Meena said in Mumbai On Tuesday.
The Indian economy would grow faster during the current quarter, compared with the previous quarter, Meena said.
Sterlite rose 4.8 per cent to Rs 740.25, its highest since June 20, 2008. Tata Steel Ltd, the biggest producer of the alloy, advanced 3.3 per cent to Rs 456.5. Hindalco Industries Ltd, the No. 1 aluminum producer, rose 6 per cent to Rs 114.95.
Three-month delivery copper on the London Metal Exchange rose 0.8 per cent to $6,324 a metric tonne at 4:10 pm in Mumbai. Aluminum added 0.9 per cent to $1,866 a tonne.
Auto loans rise
Hero Honda gained 2.2 per cent to Rs 1,668.85, its highest in six weeks. Chanda Kochhar, CEO of ICICI Bank Ltd, said lending rates in India had bottomed out and there was a revival in housing and car loans, a television channel reported.
State Bank jumped 4.5 per cent to Rs 1,894.05. The bank expected profit in the three months ending September 30 to rise 40 per cent.
“Things are looking good,” said Deven Choksey, CEO of KR Choksey Shares & Securities Pvt. “Companies will declare advance tax numbers next week. There is an expectation that companies will pay more taxes, which means their profits may be higher in the September quarter.”
Gateway Distriparks Ltd, an Indian shipping-logistics provider, climbed as much as 20 per cent following a report that it may sell a unit for as much as Rs 300 crore. The stock closed up 4 per cent at Rs 121.
Jet Airways (India) Ltd, the nation’s largest carrier by market value, lost 2.7 per cent to Rs 263.35 after saying it would cancel 115 flights On Tuesday because of a strike by its pilots.
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