Stocks close marginally higher on GDP data

Stocks advanced for a sixth time in seven days, as data showing Asia's third-biggest economy expanded faster than earlier estimated boosted investor confidence.

Adani Ports & Special Economic Zone rose the most in five weeks. ITC surged to a 15-month high. Bharti Airtel gained the most in a month. Tata Consultancy Services posted the biggest jump since April 11.

The BSE Sensex climbed 0.2 per cent at the close in Mumbai, extending last month's 4.1 per cent gain. Gross domestic product grew 7.9 per cent in the March-quarter, faster than the 7.5 per cent median estimate in a Bloomberg survey. The figures cement India's position as a bright spot among emerging markets as China slows, while Russia and Brazil see contractions.

"The GDP data has reinforced India's growth story," Vikas Gupta, an executive vice-president at Arthveda Fund Management Pvt, said by phone from Dubai. "Overseas funds may raise their allocations to India, given the nation's growth differential compared with the rest of the world. The outlook for the monsoon and a turnaround in company earnings makes us positive on the market."

A recovery in corporate profitability after declines in four of the last five quarters and forecast for above-average rainfall following two successive droughts has lifted investor confidence in Asia's fourth-biggest stock market. Overseas funds bought $383 million of local stocks last month, the highest among eight Asian markets tracked by the Bloomberg. Bloomberg