India's Sensex Index Gains for Second Day; Bharti Advances
Nov. 5 (Bloomberg) -- India's stocks rose for a second day after the nation's tax collection increased, raising optimism the economy is recovering. Bharti Airtel Ltd. gained on reports that fees may be lowered.
Maruti Suzuki India Ltd., the maker of half the cars sold in India, advanced to the highest in almost two weeks after the government said personal income tax increased 2.9 percent. Bharti Airtel, the biggest mobile-phone service operator, jumped the most in more than two months after the Economic Times reported that the government may reduce annual license fees.
"The tax data shows that the recovery is under way," said Manish Sonthalia, a fund manager who helps oversee the equivalent of $162 million of equities at Motilal Oswal Securities Ltd. in Mumbai. "There is no doubt about it."
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 151.77, or 1 percent, to 16,063.90. The gauge had earlier declined as much as 2.2 percent. The S&P CNX Nifty Index on the National Stock Exchange gained 1.2 percent to 4,765.55. The BSE 200 Index advanced 1.4 percent to 1,989.90.
Maruti gained 1.6 percent to 1,485.7 rupees, the highest since Oct. 26. India's direct tax collection in the April- October period rose 3.9 percent to 1.7 trillion rupees ($36 billion) from a year earlier, while taxes from companies climbed 4.6 percent to 1.09 trillion, the Central Board of Direct Taxes said in a statement in New Delhi. Personal income taxes increased to 632 billion rupees.
ICICI, Mahindra
ICICI Bank Ltd., the nation's second-biggest lender, rose 2 percent to 844.65 rupees, while Mahindra & Mahindra Ltd., the largest maker of sport-utility vehicles and tractors, added 3.6 percent to 960.85 rupees.
Bharti gained 4.5 percent to 319.3 rupees. Reliance Communications, the second-biggest mobile-phone service operator, added 5 percent to 178.2 rupees. India's Communications Minister Andimuthu Raja couldn't be immediately reached for a comment in his office on the report on lower fees.
Both Bharti and Reliance Communications were the worst performers on the Sensex this year.
"The telecom stocks are a great buying opportunity as they are trading at discount valuations," Sonthalia added.
DLF Ltd., the biggest developer, advanced 2 percent to 372.4 rupees after it said it sees no danger of a housing "bubble," a week after the central bank increased efforts to curb home prices.
Indian stocks may gain as much as 32 percent by the end of next year as a recovery in companies' industrial output and capacity utilization helps boost growth, BNP Paribas said.
Investment Themes
Investment themes for next year will revolve around the acceleration in infrastructure spending along with resilient urban and rural incomes, BNP strategist Manishi Raychaudhuri wrote in a report to clients today. The nation's central bank may choose to exit its accommodative policy by ordering banks to set aside more cash in government bonds instead of increasing borrowing costs in the first quarter of 2010, he said.
Indian stocks entered "attractive territory" after the retreat from this year's high, Nomura Holdings Inc. added.
The following stocks are among the most active in Indian trade. Stock codes are in brackets:
IRB Infrastructure Developers Ltd. (IRB IN), fell 0.6 percent to 243.15 rupees after it was cut to "reduce" from "neutral" at Nomura Holdings, which said the stock's valuations are "rich" given expectations for returns and the company's "constraints" in adding new projects.
Rashtriya Chemicals & Fertilisers Ltd. (RCF IN), India's second-biggest maker by market capitalization of products used to grow crops, climbed 12 percent to 65.8 rupees, the most since May 18. State-controlled Rashtriya Chemicals is negotiating with seven cement companies to provide clearing and forwarding services through its marketing and dealership chain in India, BusinessLine reported today, citing Managing Director U.S. Jha.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net .
Nov. 5 (Bloomberg) -- India's stocks rose for a second day after the nation's tax collection increased, raising optimism the economy is recovering. Bharti Airtel Ltd. gained on reports that fees may be lowered.
Maruti Suzuki India Ltd., the maker of half the cars sold in India, advanced to the highest in almost two weeks after the government said personal income tax increased 2.9 percent. Bharti Airtel, the biggest mobile-phone service operator, jumped the most in more than two months after the Economic Times reported that the government may reduce annual license fees.
"The tax data shows that the recovery is under way," said Manish Sonthalia, a fund manager who helps oversee the equivalent of $162 million of equities at Motilal Oswal Securities Ltd. in Mumbai. "There is no doubt about it."
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 151.77, or 1 percent, to 16,063.90. The gauge had earlier declined as much as 2.2 percent. The S&P CNX Nifty Index on the National Stock Exchange gained 1.2 percent to 4,765.55. The BSE 200 Index advanced 1.4 percent to 1,989.90.
Maruti gained 1.6 percent to 1,485.7 rupees, the highest since Oct. 26. India's direct tax collection in the April- October period rose 3.9 percent to 1.7 trillion rupees ($36 billion) from a year earlier, while taxes from companies climbed 4.6 percent to 1.09 trillion, the Central Board of Direct Taxes said in a statement in New Delhi. Personal income taxes increased to 632 billion rupees.
ICICI, Mahindra
ICICI Bank Ltd., the nation's second-biggest lender, rose 2 percent to 844.65 rupees, while Mahindra & Mahindra Ltd., the largest maker of sport-utility vehicles and tractors, added 3.6 percent to 960.85 rupees.
Bharti gained 4.5 percent to 319.3 rupees. Reliance Communications, the second-biggest mobile-phone service operator, added 5 percent to 178.2 rupees. India's Communications Minister Andimuthu Raja couldn't be immediately reached for a comment in his office on the report on lower fees.
Both Bharti and Reliance Communications were the worst performers on the Sensex this year.
"The telecom stocks are a great buying opportunity as they are trading at discount valuations," Sonthalia added.
DLF Ltd., the biggest developer, advanced 2 percent to 372.4 rupees after it said it sees no danger of a housing "bubble," a week after the central bank increased efforts to curb home prices.
Indian stocks may gain as much as 32 percent by the end of next year as a recovery in companies' industrial output and capacity utilization helps boost growth, BNP Paribas said.
Investment Themes
Investment themes for next year will revolve around the acceleration in infrastructure spending along with resilient urban and rural incomes, BNP strategist Manishi Raychaudhuri wrote in a report to clients today. The nation's central bank may choose to exit its accommodative policy by ordering banks to set aside more cash in government bonds instead of increasing borrowing costs in the first quarter of 2010, he said.
Indian stocks entered "attractive territory" after the retreat from this year's high, Nomura Holdings Inc. added.
The following stocks are among the most active in Indian trade. Stock codes are in brackets:
IRB Infrastructure Developers Ltd. (IRB IN), fell 0.6 percent to 243.15 rupees after it was cut to "reduce" from "neutral" at Nomura Holdings, which said the stock's valuations are "rich" given expectations for returns and the company's "constraints" in adding new projects.
Rashtriya Chemicals & Fertilisers Ltd. (RCF IN), India's second-biggest maker by market capitalization of products used to grow crops, climbed 12 percent to 65.8 rupees, the most since May 18. State-controlled Rashtriya Chemicals is negotiating with seven cement companies to provide clearing and forwarding services through its marketing and dealership chain in India, BusinessLine reported today, citing Managing Director U.S. Jha.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net .
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