Mumbai : India's stocks advanced for a second day as investors bought shares in companies whose earnings may benefit from the nation's economic expansion.
Bharti Airtel, the nation's largest mobile-phone carrier, rose to its highest in a month after a report that it plans to cut costs by setting up tower units in the African countries in which it operates.
Reliance Power increased 2.8 per cent after agreeing to buy two coal companies in Indonesia. Subex, a telecommunications software maker, advanced after reporting a full-year profit.
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 264.19, or 1.6 per cent, to 16,922.08. The S&P CNX Nifty Index on the National Stock Exchange rose 1.6 per cent to 5,078.60. The BSE 200 Index increased 1.4 per cent to 2,155.13.
"The earnings of Indian companies will continue to rise over the next three to four years," said Tejas Doshi, vice president of equity research at Sushil Financial Services Pvt. in Mumbai. "The infrastructure and consumption growth story is self propelling. India is the place to put your money."
Bharti, which bought assets in 15 African countries from Mobile Telecommunications this month, added 4.8 per cent to Rs285.20, its highest since May 10. Spokesman Senjam Raj Sekhar wasn't immediately available to comment on the Economic Times report, which cited international unit CEO Manoj Kohli.
Power surge
Reliance Power, controlled by billionaire Anil Ambani, increased 2.8 per cent to Rs156.5. Reliance Coal Resources, a unit of Reliance Power, agreed to buy two coal companies that own three coal mines in Indonesia as it seeks fuel for power plants it's building in India.
Subex surged 3.8 per cent to Rs53.75 after posting a full-year profit of Rs1.37 billion, compared with a Rs1.78 billion loss a year earlier.
Orchid Chemicals & Pharmaceuticals jumped 4.7 per cent to Rs151.1, its highest level a month. The drugmaker agreed to buy US-based Karalex Pharma, according to a statement.
