Indian Stocks Rise for the First Time This Week Led by Infosys

Indian Stocks Rise for the First Time This Week Led by Infosys

Indian stocks gained for the first time this week, led by Infosys Technologies Ltd. and Wipro Ltd. as the depreciating rupee is expected to boost overseas earnings of software companies. 

Infosys, India’s second-largest software services provider, gained 2.6 percent. More than half of the company’s sales are derived from the U.S. Tata Consultancy Services Ltd., India’s largest software developer, gained 1.8 percent. 

“The weakening rupee is always good news for this sector,” said Sandip Sabharwal, chief investment officer at Mumbai-based J.M. Financial Mutual Fund, which has $1.1 billion in assets. “The sector will be in favor for a few more days.” 

The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 0.3 percent to 9,042.63. The S&P CNX Nifty Index on the National Stock Exchange gained 0.5 percent to 2,789.35. The BSE 200 Index added 0.2 percent to 1,066.10. S&P CNX Nifty futures for February delivery advanced 1 percent to 2,792. 

The rupee gained 0.7 percent to 49.64 per dollar as of 4:09 p.m. in Mumbai, according to data compiled by Bloomberg. The currency, which has lost 2.4 percent this week, fell as low as 50.0625 yesterday, the weakest since Dec. 3. 

“The market remained in the positive territory as slowing inflation rate improved the chances of a rate cut announcement,” Sanjay Makhija, head of institutional sales at Fortune Financial Services Ltd. in Mumbai said. 

Wholesale prices climbed 3.92 percent in the first week of February from a year ago after gaining 4.39 percent the previous week, the commerce ministry said in New Delhi today. Economists expected an increase of 4.01 percent. 

Reserve Bank of India Governor Duvvuri Subbarao yesterday said there was “certainly room” to reduce borrowing costs as the impact of the global recession on Asia’s third-largest economy had been “much sharper” than expected. Inflation has eased from a 16-year high of 12.91 percent in August on lower commodity and energy prices. 

The following were among the most active shares traded on the Bombay and National stock exchanges. Stock symbols are in parentheses after company names: 

Hindalco Industries Ltd. (HNDL IN) fell 1.5 percent to 40.1 rupees. The country’s biggest aluminum producer plans to raise 250 billion rupees pledging assets and future earnings of its units, Mint newspaper said, citing Chief Financial Officer Sunirmal Talukdar. 

Maytas Infra Ltd. (MAY IN) shed 4.96 percent to 53.65 rupees. The developer said it will contest the government’s order to remove its directors. The government on Feb. 17 said it had asked the Company Law Board to remove the directors of Maytas Infra and Maytas Properties Ltd. 

Satyam Computer Services Ltd. (SCS IN) fell 4.8 percent to 46.2 rupees. The restatement of accounts of the software developer at the center of the nation’s biggest fraud case may take more than six months as it includes auditing accounts of the past three-to-four years and involves complicated transactions, the Press Trust of India yesterday reported, citing KPMG India’s Chief Operating Officer Richard Rekhy.

View Original>>>