Equities soar as rising tax revenues signal recovery

Mumbai: Most Indian stocks rose as the nation's tax collection jumped, adding to evidence that the South Asian country's economy is recovering.

Tata Power Company, the biggest electricity generator outside state control, climbed to a 19-month high. India's direct tax collections in the April-December period rose 8.5 per cent to Rs2.5 trillion (Dh213 billion), the government said.

Maruti Suzuki India Ltd slid the most in more than two months as the central bank said foreign shareholdings approached their limit.

"The evidence of an economic recovery is getting stronger," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd in Kochi.

"Growth is likely to be more than what was estimated in the last year."

The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 14.89, or 0.1 per cent, to 17,701.13. Of the 30 stocks on the index, 16 gained and 14 declined.

The S&P CNX Nifty Index on the National Stock Exchange added 0.1 per cent to 5,281.80. The BSE 200 Index increased 0.2 per cent to 2,226.68.

Tata Power climbed 4.6 per cent to Rs1,475.05, the highest since May 22, 2008. India's direct tax collections in the April-December period rose 8.5 per cent to Rs2.5 trillion, the government said late yesterday. Corporate tax collections climbed 13.5 per cent to Rs1.7 trillion.

Grasim Industries Ltd, India's third-biggest cement maker, jumped 4.1 per cent to Rs2,736.95.

Mahindra & Mahindra Ltd added 2.4 per cent to Rs1,178.25.