The Bombay Stock Exchange's Sensitive Index rose On Wednesday, recovering from a three-year low. Sterlite Industries (India) led commodity producers higher on optimism that the Chinese government would increase infrastructure spending to boost its economy.
Sterlite, India’s largest copper producer, added 3.4 per cent, as China, the world largest consumer of metals, was believed to be mulling a new stimulus package. Hindalco Industries, the country’s largest aluminum maker, rose 3.2 per cent.
“Copper prices have surged on expectations of a China stimulus package,” said Navneet Munot, who oversees about $5.5 billion of assets as chief investment officer at SBI Asset Management Company in Mumbai.
The Sensex rose 19.20 points, or 0.2 percent, to 8446.49. The index yesterday closed at the lowest since November 2005. The S&P CNX Nifty Index on the National Stock Exchange added 0.9 per cent to 2,645.20. The BSE 200 Index climbed 0.3 per cent to 998.03. S&P CNX Nifty futures for March delivery rose 1.7 per cent to 2,635.
Sterlite added 3.4 per cent to Rs 245.50. Hindalco rose 3.2 per cent to Rs 38.60. SAIL climbed 7.1 per cent to Rs 75.80. JSW Steel rose 4.3 per cent to Rs 177.85. Funds based abroad sold $1.72 billion more Indian equities than they bought this year, adding to 2008’s $13.3 billion in net sales, according to the Securities and Exchange Board of India data. Overseas investors sold a net Rs 478 crore ($92 million) of Indian stocks on March 2, according to the nation’s market regulator.
ICICI Bank, the nation’s second-biggest lender, slid 3.6 per cent to Rs 284.90, its lowest since September 2004. Standard & Poor’s lowered the bank’s short-term issue credit rating on a $375 million Bank of America-backed US commercial paper following the downgrade of the counterparty credit ratings on Bank of America.
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Gateway Distriparks rose 5.8 per cent to Rs 46.70. The Indian shipping-logistics provider had 5.6 per cent of its equity change hands in a single trade on the Mumbai stock exchange at Rs 46.50 a share, exchange data showed. Orissa Sponge Iron & Steel rose by its 5 per cent limit to Rs 359.95. Bhushan Energy acquired a 4.1 per cent stake in Orissa Sponge for Rs 2.78 crore.
Bhushan Energy bought 817,000 shares of Orissa Sponge at Rs 342.85 apiece. Quantum M was the seller, the exchange said. Reliance Petroleum gained 1 per cent to Rs 74.10. The stock had its rating raised to “neutral” from “sell” at Goldman, Sachs & Co, citing the company’s plan to merge with its parent Reliance Industries. Satyam Computer Services declined 3.4 per cent to Rs 37.90. The guidelines for the sale of Indian computer software maker, at the centre of India’s biggest corporate fraud, will be announced in 10 days, Company Affairs Minister Prem Chand Gupta said yesterday. Gupta didn’t elaborate.