Indian stocks rose for the third day, the longest winning streak in more than a month, led by lenders and construction companies on expectations of a cut in interest rates and after banks offered cheaper home loans.
HDFC Bank, the third-largest bank by market value, rose 4.3 per cent to Rs 984.95, its biggest advance in three weeks. Grasim Industries gained for the second day after banks said they’d offer low-interest loans to home seekers.
“There is an expectation that the Reserve Bank of India may lower interest rates next week as inflation is likely to decline further,” said R K Gupta, who manages the equivalent of about $100 million of stocks at Taurus Mutual Fund in New Delhi.
The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, added 144.59, or 1.5 per cent, to 9,976.98 at close of trading. The S&P CNX Nifty Index on the National Stock Exchange rose 60.55, or 2 per cent, to 3,041.75. The BSE 200 Index gained 1.8 per cent to 1,179.49. Nifty futures for December delivery climbed 2.3 per cent to 3,048.40.
The Sensex has declined 51 per cent this year on concern the Indian economy may slow and as risk-averse investors withdrew money from emerging markets.
State Bank of India, the nation’s largest by assets, rose 2.8 per cent to Rs 1,238.75, the most in a week. ICICI Bank, the second biggest, rose 0.6 per cent to Rs 421.
ACC, the country’s biggest cement maker, gained Rs 21.80, or 4.2 per cent, to 535.75, after gaining 4.2 per cent yesterday. Ambuja Cements, the second-biggest, rose Rs 4.60, or 6.9 per cent, to 71.55. The stock rose 8.9 per cent yesterday.
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“Lower interest rates will revive the housing market, creating demand for construction materials, including cement and steel,” Gupta said.
Oil & Natural Gas Corporation, India’s biggest oil producer, rose 5.9 per cent to 713.35, the most in more than a month. Reliance Industries, the nation’s most valuable company, gained Rs 47.95, or 3.6 per cent, to 1,388.50.
Overseas investors bought a net Rs 239 crore ($50 million) of Indian stocks yesterday, the nation’s market regulator said.
HCL Technologies surged 18 per cent to Rs 123.05, its biggest gain since it started trading. The computer- services provider that acquired Axon Group said the purchase was already helping it bid for orders worth as much as $1.2 billion. The company said it has won orders worth more than $1 billion in the current quarter.
Indian Oil Corporation fell Rs 6.65, or 1.7 per cent, to 379.40. The nation’s largest refiner cut the price of jet fuel for the second time this month after crude oil prices declined.
Infosys Technologies rose Rs 22.50, or 2 per cent, to 1,124.80. The country’s second-largest software services provider won an order for its Finacle banking software from DSB Bank of the Netherlands.