Indian Stocks Rise, Set for Biggest Weekly Advance Since May
July 17 (Bloomberg) -- Indian stocks rose, set for the biggest weekly gain since May, after the government said it will sponsor new laws to reform the banking and pension industries and allow greater foreign investment in insurance.
ICICI Bank Ltd., the second-biggest lender and owner of the No. 1 private insurer ICICI Prudential Life Insurance Co., jumped more than 5 percent after Finance Secretary Ashok Chawla told reporters the ministry will introduce seven bills in parliament. State-run NMDC Ltd., India's largest iron-ore producer, gained as much as 10 percent after Chawla said the government will sell stakes in listed companies to raise funds.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 285.29, or 2 percent, to 14,535.54 at 11:57 a.m. in Mumbai. The gauge has gained 8.3 percent this week, recovering most of the 9.5 percent loss last week after Finance Minister Pranab Mukherjee on July 6 unveiled the widest budget deficit in 16 years and failed to lay out firm plans to sell state assets.
"Had these announcements been made in the budget, the markets would have jumped that day itself," said Manish Sonthalia, a fund manager who helps oversee the equivalent of $100 million of equities at Motilal Oswal Securities Ltd. in Mumbai. "The concerns that were there just after the budget are now going away."
The S&P CNX Nifty Index on the National Stock Exchange added 2.1 percent to 4,319.1. The BSE 200 Index increased 2 percent to 1,779.4.
ICICI, State Bank
ICICI Bank rose 5.5 percent to 732.25 rupees. State Bank of India Ltd., India's biggest lender, advanced 3.7 percent to 1,664 rupees. NMDC jumped 7.6 percent to 385.65 rupees after the Press Trust of India reported India plans to sell stakes in four state-run companies including NMDC.
India's record borrowing in the financial year ending March 31 will only have a "marginal impact" on yields and won't drive interest rates too high, Chawla said in New Delhi.
The time is not ripe to reverse the expansionary monetary policy and the government's aim is to keep interest rates benign, he said. India will start to reduce its budget deficit from next year, and the worst case for the shortfall in the current year is 7 percent of gross domestic product, he said. Finance Minister Pranab Mukherjee's July 6 budget had estimated 6.8 percent of GDP.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
July 17 (Bloomberg) -- Indian stocks rose, set for the biggest weekly gain since May, after the government said it will sponsor new laws to reform the banking and pension industries and allow greater foreign investment in insurance.
ICICI Bank Ltd., the second-biggest lender and owner of the No. 1 private insurer ICICI Prudential Life Insurance Co., jumped more than 5 percent after Finance Secretary Ashok Chawla told reporters the ministry will introduce seven bills in parliament. State-run NMDC Ltd., India's largest iron-ore producer, gained as much as 10 percent after Chawla said the government will sell stakes in listed companies to raise funds.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 285.29, or 2 percent, to 14,535.54 at 11:57 a.m. in Mumbai. The gauge has gained 8.3 percent this week, recovering most of the 9.5 percent loss last week after Finance Minister Pranab Mukherjee on July 6 unveiled the widest budget deficit in 16 years and failed to lay out firm plans to sell state assets.
"Had these announcements been made in the budget, the markets would have jumped that day itself," said Manish Sonthalia, a fund manager who helps oversee the equivalent of $100 million of equities at Motilal Oswal Securities Ltd. in Mumbai. "The concerns that were there just after the budget are now going away."
The S&P CNX Nifty Index on the National Stock Exchange added 2.1 percent to 4,319.1. The BSE 200 Index increased 2 percent to 1,779.4.
ICICI, State Bank
ICICI Bank rose 5.5 percent to 732.25 rupees. State Bank of India Ltd., India's biggest lender, advanced 3.7 percent to 1,664 rupees. NMDC jumped 7.6 percent to 385.65 rupees after the Press Trust of India reported India plans to sell stakes in four state-run companies including NMDC.
India's record borrowing in the financial year ending March 31 will only have a "marginal impact" on yields and won't drive interest rates too high, Chawla said in New Delhi.
The time is not ripe to reverse the expansionary monetary policy and the government's aim is to keep interest rates benign, he said. India will start to reduce its budget deficit from next year, and the worst case for the shortfall in the current year is 7 percent of gross domestic product, he said. Finance Minister Pranab Mukherjee's July 6 budget had estimated 6.8 percent of GDP.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
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