Stocks rose, with the Bombay Stock Exchange’s Sensitive Index snapping a two-day 2.4 per cent drop. Infosys Technologies led software exporters higher after assurances on the health of US banks, which are among their biggest customers.
Infosys, the nation’s second-biggest software exporter, added 2.7 per cent. Sterlite Industries led commodity producers higher as a rebound in US equity indexes revived optimism for metals demand.
“Markets are increasingly tracking global cues, as locally there isn’t much expected with the general elections a few months away,” said Mahesh Patil, who helps manage $8.8 billion at Birla Sun Life Asset Management in Mumbai. “Commodities are seeing a bounce up after the sharp drop in prices.”
The Sensex rose 80.50 points, or 0.9 per cent, to 8,902.56. The S&P CNX Nifty Index on the National Stock Exchange added 1.1 per cent to 2,762.50. The BSE 200 Index climbed 0.8 per cent to 1,045.55. S&P CNX Nifty futures for February delivery added 1 per cent to 2,752.20.
Infosys rose 2.7 per cent to Rs 1,217.45. Tata Consultancy Services, the nation’s largest software developer, gained 2.5 per cent to Rs 480.75. Wipro advanced 2.2 per cent to Rs 217.60. India’s software exporters derive more than half their revenue from the US.
The US Standard & Poor’s 500 Index jumped 4 per cent in New York yesterday, the most in a month, as Federal Reserve Chairman Ben S Bernanke said there was a “reasonable prospect” the current recession will end this year. This will be the case should regulators manage to restore stability in the financial industry, he said in remarks to the Senate Banking Committee. Sterlite, India’s biggest copper producer, rose 1.2 per cent to Rs 246.80. Hindalco Industries, India’s biggest aluminum producer, gained 2.6 per cent to Rs 40.
A measure of six primary metals traded in London advanced 1.9 per cent yesterday. Copper rose the most in more than two weeks on the New York Mercantile Exchange’s Comex division, the biggest gain for a most-active contract since February 6. Overseas investors sold a net Rs 170 crore ($34.5 million) of Indian stocks on February 20, according to the nation’s market regulator.
Diamond Power Infrastructure rose 4.4 per cent to Rs 80.35, the most since January 14. The Indian cable maker said its board will consider a plan to give free shares to stockholders. ICSA India, the builder of electricity transmission lines, added 5.9 per cent to Rs 78, after 3.4 per cent of equity changed hands in two deals.
Orissa Sponge Iron & Steel, whose shares have tripled this year, rose by its 5 per cent limit to Rs 282.10, its highest since September 2. A unit of India’s Monnet Group offered to acquire 20 per cent of Orissa Sponge at Rs 310 each, countering a bid by a rival steelmaker. The offer, which opens April 4 and closes April 23, will raise the acquirers’ stake to 69.15 per cent.
Bhushan Power & Steel offered to buy 26 per cent of Orissa Sponge from minority shareholders starting February 27, Centrum Capital, Bhushan’s adviser, said on February 7. Bhushan Power plans to buy 5.2 million shares at Rs 300 each starting April 3.
