Sensex hits 10-month high on growth cue

Indian stocks rose to a 10-month high, led by Larsen & Toubro, after Prime Minister Manmohan Singh said the economy can rebound to a 9 per cent growth rate amid global recession.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 461.08 points, or 3.1 per cent, to 15,127, the highest since August 12. The S&P CNX Nifty Index on the National Stock Exchange advanced 2.7 per cent to 4,550.95. The BSE 200 Index added 3.1 per cent to 1,836.78.

Larsen & Toubro, India’s biggest engineering company, surged 6.3 per cent, while Jaiprakash Associates, the largest builder of dams, climbed 8.1 per cent after Singh said there was “manoeuverability” on roads and ports.

Tata Consultancy Services led software providers higher after Satyam Computer Services said it was profitable before its former chairman disclosed a $1-billion fraud in January. Satyam hit the 10 per cent daily limit to Rs 66.80 after it reported Rs 160 crore ($33.6 million) profit for the quarter ended December 31.

Hyderabad-based Satyam made the first public disclosure of earnings estimates since former Chairman Ramalinga Raju said in January he inflated the software provider’s assets by more than $1 billion, prompting India’s biggest corporate fraud probe.

The accuracy of the results couldn’t be guaranteed as the financial figures stretching back to 2000 were yet to be verified by an independent auditor, the company said in a statement to the National Stock Exchange.

DLF, the nation’s largest developer, jumped 10 per cent to Rs 402.65, and Larsen & Toubro added 6.3 per cent to Rs 1,572.80. Jaiprakash advanced 8.1 per cent to Rs 224.20.