Stocks rose, driving the Bombay Stock Exchange’s Sensitive Index to its highest in two weeks, led by banks and car makers after G-20 officials said their priority was to restore lending and oil prices tumbled.
State Bank of India (SBI), the nation’s largest, gained 3.6 per cent after the G-20 at the weekend outlined guidelines on how governments should rid banks of distressed securities. Mahindra & Mahindra, India’s biggest maker of sport-utility vehicles, jumped 8.4 per cent as oil slumped after Opec refrained from cutting output.
The Sensex, added 186.93, or 2.1 per cent, to 8,943.54, the highest since February 26. The gauge, which increased 5.2 per cent last week, swung between gains and losses at least eight times earlier today. The S&P CNX Nifty Index on the National Stock Exchange advanced 2.1 per cent to 2,777.25.
“Indian stocks had substantially rallied last week in anticipation of the G-20 meeting,” said Shashank Khade, who helps manage $300 million at Kotak Securities in Mumbai. “But now, what the markets want to see after the event, is the actions they take.”
| Mar 16 ’09 | % Chg* | |
| TOP SENSEX GAINERS | ||
| JP Asso | 77.25 | 8.96 |
| Mah & Mah | 374.05 | 8.48 |
| Ranbaxy Labs | 148.0 | 6.8 |
| Reliance Comm | 156.8 | 6.7 |
| DLF | 162.0 | 6.2 |
| Share Price in Rs on BSE, * Change over previous close | ||
The BSE 200 Index climbed 2.3 per cent to 1,047.5. S&P CNX Nifty futures for March delivery gained 2.2 per cent to 2,775.80. SBI increased 3.6 per cent to Rs 987.05. ICICI Bank, India’s second-largest, added 4.6 per cent to Rs 322.8, its highest level since February 27.
Mahindra & Mahindra climbed 8.4 per cent to Rs 373.9. Tata Motors, the maker of Jaguar and Land Rover vehicles, gained 3.1 per cent to Rs 166.7.
Auto makers advanced as oil futures tumbled on a decision by the Opec, supplier of about 40 per cent of the world’s crude oil, to maintain current production quotas. The group was concerned that a fourth cut since September risked increasing energy costs during the worst global economy in six decades.
Ingersoll Rand India, a unit of the US-based producer of refrigeration equipment, gained 20 per cent, the most in three-and-half years, to Rs 248. EID Parry: The sugar and agriculture inputs maker, rose 18 per cent, the most in more than four months, to Rs 152.25 after its board said it would pay an interim dividend of Rs 10 a share.
