India's Stocks Rise, Set for Longest Weekly Rally in Four Years
June 12 (Bloomberg) -- India's stocks rose, driving the benchmark index to its longest weekly winning streak in four years, as commodity producers gained on expectations the government's infrastructure spending will boost steel demand.
Tata Steel Ltd., the biggest producer of the alloy, advanced 2.5 percent. Sterlite Industries (India) Ltd., the nation's largest copper and zinc producer, added 2.8 percent, and Hindalco Industries Ltd., the No. 1 aluminum maker, climbed 1.8 percent.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 71.21, or 0.5 percent, to 15,482.68 at 10:54 a.m. in Mumbai today. The measure is set to increase 2.7 percent this week, its 14th weekly advance and the longest stretch of gains since August 2005.
"Infrastructure and low-cost housing is a priority for the government," said Amitabh Chakraborty, president of equities at Religare Capital Markets Ltd. in Mumbai. More spending "will drive demand for metal and cement."
The S&P CNX Nifty Index on the National Stock Exchange added 0.4 percent to 4,655.10. The BSE 200 Index increased 0.8 percent to 1,882.90.
Sterlite added 2.8 percent to 722.60 rupees. Hindalco climbed 1.8 percent to 103.25 rupees. Tata Steel gained 2.4 percent to 463.50 rupees.
Rising Steel Demand
India's steel demand may gain as much as 10 percent this fiscal year, almost double the pace previously estimated, as the government spends more on infrastructure, Steel Secretary Pramod Rastogi said.
"Based on the economic factors, it will not be a surprise to see a surge in consumption," Rastogi said yesterday in an interview in New Delhi, revising his May 18 forecast of 6 percent growth this year. Demand, which almost disappeared last year, rose 6 percent in the past two months, he said.
The Sensex has risen 61 percent this year, the fourth-best performer among 90 stock measures globally tracked by Bloomberg.
Prime Minister Manmohan Singh's administration, which returned to power without the help of communist allies last month, is reviving state projects and restoring a rural jobs program that's lifting demand in villages and towns. The government plans to spend $8.95 billion this fiscal year to build networks of roads, telephones, electricity and irrigation.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
June 12 (Bloomberg) -- India's stocks rose, driving the benchmark index to its longest weekly winning streak in four years, as commodity producers gained on expectations the government's infrastructure spending will boost steel demand.
Tata Steel Ltd., the biggest producer of the alloy, advanced 2.5 percent. Sterlite Industries (India) Ltd., the nation's largest copper and zinc producer, added 2.8 percent, and Hindalco Industries Ltd., the No. 1 aluminum maker, climbed 1.8 percent.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 71.21, or 0.5 percent, to 15,482.68 at 10:54 a.m. in Mumbai today. The measure is set to increase 2.7 percent this week, its 14th weekly advance and the longest stretch of gains since August 2005.
"Infrastructure and low-cost housing is a priority for the government," said Amitabh Chakraborty, president of equities at Religare Capital Markets Ltd. in Mumbai. More spending "will drive demand for metal and cement."
The S&P CNX Nifty Index on the National Stock Exchange added 0.4 percent to 4,655.10. The BSE 200 Index increased 0.8 percent to 1,882.90.
Sterlite added 2.8 percent to 722.60 rupees. Hindalco climbed 1.8 percent to 103.25 rupees. Tata Steel gained 2.4 percent to 463.50 rupees.
Rising Steel Demand
India's steel demand may gain as much as 10 percent this fiscal year, almost double the pace previously estimated, as the government spends more on infrastructure, Steel Secretary Pramod Rastogi said.
"Based on the economic factors, it will not be a surprise to see a surge in consumption," Rastogi said yesterday in an interview in New Delhi, revising his May 18 forecast of 6 percent growth this year. Demand, which almost disappeared last year, rose 6 percent in the past two months, he said.
The Sensex has risen 61 percent this year, the fourth-best performer among 90 stock measures globally tracked by Bloomberg.
Prime Minister Manmohan Singh's administration, which returned to power without the help of communist allies last month, is reviving state projects and restoring a rural jobs program that's lifting demand in villages and towns. The government plans to spend $8.95 billion this fiscal year to build networks of roads, telephones, electricity and irrigation.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
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