Stocks rose, driving the Bombay Stock Exchange’s Sensitive Index to its best month since April 2008, on speculation that overseas investors stepped up purchases because they expect stimulus measures to revive the economy.
Infosys Technologies, the country’s second-largest software developer, climbed 1.7 per cent. Tata Consultancy Services (TCS), the largest software exporter, added 2.9 per cent. The first gain in US home sales since July and an increase in durable goods orders prompted speculation that the largest market for India’s software would rebound.
“Data points from the US improved over the past few days and that has prompted investors to return,” said Ajay Bodke, who helps manage about $2.7 billion in assets at IDFC Asset Management Company in Mumbai. “Risk aversion is receding.”
The Sensex added 1.5 per cent or 140.36 points to 9,708.50. The index posted an 9.2 per cent advance in March.