Indian Stocks Advance; Wipro Leads Gains on Revival Expectation By Rajhkumar K Shaaw
Wipro, the nation’s third-biggest software services provider, gained 1.4 percent after the Economic Times said the company has lifted a freeze on promotions and salary increases, suggesting higher profitability. Infosys Technologies Ltd., the No. 2, gained 1.2 percent to its highest in more than 2 1/2 years after the Organization for Economic Cooperation and Development said its leading economic indicator suggests recovery is under way in most member economies. Jaiprakash Associates Ltd. lost 1.9 percent after data showed India’s industrial growth slowed.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, gained 47.4, or 0.3 percent, to 16,264.3, after swinging between gains and losses at least 20 times. The gauge gained 3.7 percent this week. The S&P CNX Nifty Index on the National Stock Exchange rose 0.2 percent to 4,829.55. The BSE 200 Index advanced 0.1 percent to 1,984.48.
“The fundamentals of the global economy seem to be improving,” said Suraj Saraogi, managing director at Keynote Capital Ltd. in Mumbai. “We are positive on the markets in the long term.”
Wipro gained 1.4 percent to 550.95 rupees after the Economic Times said the company’s decision may be “the first signs of a turnaround in the information technology sector.” Infosys rose 1.2 percent to 2,267.4 rupees, its highest since February 2007. Tata Consultancy Services Ltd., the No. 1 software services company, climbed 0.7 percent to 560.35 rupees. Indian software exporters derive 40 percent of earnings from the U.S.
The Organization for Economic Cooperation and Development said its leading economic indicator increased by 1.5 points in July from the previous month to a reading of 97.8, which was 1.9 points lower than a year earlier, the Paris-based organization said today.
“Clear signals of recovery are now visible in all seven major economies,” according to a statement from the organization today, referring to the Group of Seven nations. It highlighted France, Italy, China, Russia and India as showing significant improvements, adding that “the signs from Brazil, where a trough is emerging, are also more encouraging.”
The OECD’s leading economic indicator aims to signal when the direction of the economy is changing, with any level below 100 signaling contraction.
While not in the OECD, China’s indicator gained 1.6 points and India’s increased 1.3 points in July.
Overseas funds bought a net 2.47 billion rupees ($51 million) of Indian stocks on Sept. 9, the Securities and Exchange Board of India said on its Web site. The funds have bought 417.8 billion rupees of the nation’s stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.
Jaiprakash lost 1.9 percent to 228.4 rupees after the statistics agency said the nation’s industrial output rose 6.8 percent in July, less than the revised 8.2 percent gain in June.
The increase in output at factories, utilities and mines was less than the median estimate of 7 percent predicted by economists surveyed by Bloomberg News before June’s figure was revised higher.
“The numbers are below expectation,” said A.N. Sridhar, a fund manager at Sahara Asset Management Co. in Mumbai.
Maruti Suzuki India Ltd., the maker of half the cars sold in India, lost 1.4 percent to 1,468.6 rupees. Tata Motors Ltd., India’s biggest truckmaker and owner of Jaguar Land Rover Ltd., fell 2.2 percent to 550.3 rupees. Bharat Heavy Electricals Ltd., whose turbines and generators light up three of every four homes in India, dropped 0.5 percent to 2,256.45 rupees.
Sterlite Industries (India) Ltd., the biggest copper producer, retreated 2.6 percent to 746.2 rupees after its parent raised a bid for Asarco LLC to $2.56 billion from $2.29 billion.
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