India's Stocks Rise as Monsoon Concern Eases; Mahindra Gains
July 14 (Bloomberg) -- Indian stocks rose the most in three weeks, led by Mahindra & Mahindra Ltd., on expectations prospects for crops may improve as the weather bureau forecast monsoon rains to intensify.
Mahindra & Mahindra, the country's largest maker of tractors, increased the most in a week. Jaiprakash Associates Ltd., the biggest maker of dams, soared 4.5 percent to 185.55 rupees. Agriculture makes up about 20 percent of the Indian economy, according to IIFL Ltd. in Mumbai.
"If the rains pick up sufficiently enough in most regions during the peak sowing season, which is until the end of July, then the concern on crop output may not be so high," said Sangeetha Saranathan, an analyst who tracks the agriculture sector at IIFL in Mumbai. "If the rains are good, the concerns on lower GDP growth will go away."
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 305.33, or 2.3 percent, to 13,702.51 at 10:33 a.m. in Mumbai, the most since June 26. The S&P CNX Nifty Index on the National Stock Exchange added 2 percent to 4,054.45. The BSE 200 Index increased 2.3 percent to 1,665.02.
The monsoon is the main source of irrigation for the nation's 235 million farmers. The northwest region, the nation's biggest producer of rice, wheat and sugar cane, will receive rain and thundershowers, the India Meteorological Department said today on its Web site. The country is the world's top producer of the three crops and relies on the June-September rains to produce food for its 1.2 billion people.
Mahindra, Jaiprakash
Mahindra & Mahindra rose 1.7 percent to 690 rupees. Jaiprakash soared 4.5 percent to 185.55 rupees.
Tata Steel Ltd., the country's biggest producer, rose after the region's largest steelmakers raised prices and production after demand improved. Baoshan Iron & Steel Co., China's No. 1 steelmaker, increased prices by as much as 14 percent for August delivery, while Posco, South Korea's largest, lifted its 2009 production target.
JSW Steel Ltd., the country's third-largest producer of the alloy, added 6.5 percent to 516.90 rupees, while Steel Authority of India Ltd. gained 5.4 percent to 149 rupees.
Welspun-Gujarat Stahl Ltd. added 3.8 percent to 181.25 rupees after the country's biggest insurer invested in the company. Life Insurance Corp. of India bought 1 million shares of the pipe maker in a single transaction, according to information on the Bombay Stock Exchange Web site, paying 173 rupees a share.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net .
July 14 (Bloomberg) -- Indian stocks rose the most in three weeks, led by Mahindra & Mahindra Ltd., on expectations prospects for crops may improve as the weather bureau forecast monsoon rains to intensify.
Mahindra & Mahindra, the country's largest maker of tractors, increased the most in a week. Jaiprakash Associates Ltd., the biggest maker of dams, soared 4.5 percent to 185.55 rupees. Agriculture makes up about 20 percent of the Indian economy, according to IIFL Ltd. in Mumbai.
"If the rains pick up sufficiently enough in most regions during the peak sowing season, which is until the end of July, then the concern on crop output may not be so high," said Sangeetha Saranathan, an analyst who tracks the agriculture sector at IIFL in Mumbai. "If the rains are good, the concerns on lower GDP growth will go away."
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 305.33, or 2.3 percent, to 13,702.51 at 10:33 a.m. in Mumbai, the most since June 26. The S&P CNX Nifty Index on the National Stock Exchange added 2 percent to 4,054.45. The BSE 200 Index increased 2.3 percent to 1,665.02.
The monsoon is the main source of irrigation for the nation's 235 million farmers. The northwest region, the nation's biggest producer of rice, wheat and sugar cane, will receive rain and thundershowers, the India Meteorological Department said today on its Web site. The country is the world's top producer of the three crops and relies on the June-September rains to produce food for its 1.2 billion people.
Mahindra, Jaiprakash
Mahindra & Mahindra rose 1.7 percent to 690 rupees. Jaiprakash soared 4.5 percent to 185.55 rupees.
Tata Steel Ltd., the country's biggest producer, rose after the region's largest steelmakers raised prices and production after demand improved. Baoshan Iron & Steel Co., China's No. 1 steelmaker, increased prices by as much as 14 percent for August delivery, while Posco, South Korea's largest, lifted its 2009 production target.
JSW Steel Ltd., the country's third-largest producer of the alloy, added 6.5 percent to 516.90 rupees, while Steel Authority of India Ltd. gained 5.4 percent to 149 rupees.
Welspun-Gujarat Stahl Ltd. added 3.8 percent to 181.25 rupees after the country's biggest insurer invested in the company. Life Insurance Corp. of India bought 1 million shares of the pipe maker in a single transaction, according to information on the Bombay Stock Exchange Web site, paying 173 rupees a share.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net .
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