Markets touch 2-week high as Infosys, Tata Steel rise

Stocks on Wednesday gained, with the benchmark index climbing to a two-week high as software exporters and metal producers rallied. The Sensex increased 0.5 per cent to 28,223.08, the highest close since July 23, while a gauge of mid-cap stocks climbed to a record. Wipro and Infosys were the two biggest gainers on the BSE Sensex, adding 2.8 per cent each. Tata Consultancy Services increased 1.5 per cent. Nestle India soared 7.7 per cent, the most since April 30, 2008.

Maggi noodle samples from Goa state sent in June to the Central Food Technological Research Institute in Mysuru were found to contain lead within permissible limits, Goa State Food and Drug Administration Director Salim Veljee said by phone. With the central bank maintaining interest rates on Tuesday, investor focus has shifted back to earnings, according to Karvy Stock Broking. Fourteen of the 20 Sensex firms, or 70 per cent, have announced results so far for the June quarter that have matched or exceeded estimates, versus 40 per cent in March, data compiled by Bloomberg show.Bharti Airtel, the largest mobile-phone operator, climbed one per cent, after its earnings beat estimates.

It said after market hours on Monday its first-quarter group net income increased 40 per cent to Rs 1,550 crore ($243 million), beating the Rs 1,360 crore estimated by analysts.Tata Steel increased 2.4 per cent, extending Tuesday's 3.4 per cent gain, rising for a third day on speculation the government is considering raising the import tax on some sectoral products. Steel Authority of India climbed 2.5 per cent and JSW Steel Ltd. extended Tuesday's 5.5 per cent rally. Adani Enterprises jumped 4.7 per cent, extending Tuesday's 11 per cent rally after Foxconn Technology Group confirmed it was in talks with the Indian company for a venture. The Sensex has gained 2.6 per cent this year and trades at 15.8 times the projected 12-month earnings. The MSCI Emerging Markets Index is valued at a multiple of 11.2.

International investors bought a net $52 million of Indian stocks on Aug. 4, taking this year's inflows to $7.2 billion.