India Stocks Rise for Second Day on Government Budget Outlook
June 10 (Bloomberg) -- India stocks rose for a second day, driving the benchmark index to its highest in 10 months, on expectations the government will increase public spending in the budget next month to boost economic growth.
ICICI Bank Ltd. led lenders higher, while Tata Steel Ltd. advanced after commodity prices gained. Prime Minister Manmohan Singh said yesterday the economy can rebound to a 9 percent growth rate, and added after the close of trading the government has scope to spend more this year.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 340.96, or 2.3 percent, to 15,467.96 at 10:29 a.m. in Mumbai today, set for the highest since Aug. 11. The S&P CNX Nifty Index on the National Stock Exchange added 1.9 percent to 4,636.05, while the BSE 200 Index increased 2.2 percent to 1,877.49.
"People have a lot of expectations from the budget," said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai, who manages funds for wealthy individuals. "We are in a bull run for the next five years."
The Sensex has risen 60 percent this year, the third-best performer among 90 stock measures globally tracked by Bloomberg. The gauge also posted Asia's biggest advance.
India stocks have soared on speculation government stimulus spending worldwide will help to end the first global recession since World War II. Shares on the Sensex are valued at 16.5 times reported earnings, almost double the 8.8 times they fetched in March.
The measure had a record 17 percent surge on May 18 after the ruling Congress party won its most seats since 1991, enabling Singh to start forming a new government without support from communist lawmakers.
ICICI Bank, the country's second largest, rose 1.4 percent to 748.45 rupees. Housing Development Finance Corp., the biggest mortgage provider, gained 3.3 percent to 2,433 rupees after its board yesterday approved a proposal to raise 40 billion rupees ($845 million) selling bonds and warrants.
Tata Steel, the largest producer of the alloy, rose 5.6 percent to 462.75 rupees.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
June 10 (Bloomberg) -- India stocks rose for a second day, driving the benchmark index to its highest in 10 months, on expectations the government will increase public spending in the budget next month to boost economic growth.
ICICI Bank Ltd. led lenders higher, while Tata Steel Ltd. advanced after commodity prices gained. Prime Minister Manmohan Singh said yesterday the economy can rebound to a 9 percent growth rate, and added after the close of trading the government has scope to spend more this year.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 340.96, or 2.3 percent, to 15,467.96 at 10:29 a.m. in Mumbai today, set for the highest since Aug. 11. The S&P CNX Nifty Index on the National Stock Exchange added 1.9 percent to 4,636.05, while the BSE 200 Index increased 2.2 percent to 1,877.49.
"People have a lot of expectations from the budget," said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai, who manages funds for wealthy individuals. "We are in a bull run for the next five years."
The Sensex has risen 60 percent this year, the third-best performer among 90 stock measures globally tracked by Bloomberg. The gauge also posted Asia's biggest advance.
India stocks have soared on speculation government stimulus spending worldwide will help to end the first global recession since World War II. Shares on the Sensex are valued at 16.5 times reported earnings, almost double the 8.8 times they fetched in March.
The measure had a record 17 percent surge on May 18 after the ruling Congress party won its most seats since 1991, enabling Singh to start forming a new government without support from communist lawmakers.
ICICI Bank, the country's second largest, rose 1.4 percent to 748.45 rupees. Housing Development Finance Corp., the biggest mortgage provider, gained 3.3 percent to 2,433 rupees after its board yesterday approved a proposal to raise 40 billion rupees ($845 million) selling bonds and warrants.
Tata Steel, the largest producer of the alloy, rose 5.6 percent to 462.75 rupees.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
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