Business | Markets
India's index surges to highest in 30 months on US sentiment
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 338.62, or 1.9 per cent, to 18,560.05, its highest close since February 2008
- Bloomberg
- Published: 00:00 September 7, 2010
Mumbai: India's benchmark stock index rose to its highest in two- and-a-half years after better-than-estimated growth in US employment and manufacturing eased concern the global economy will falter, boosting the outlook for domestic companies.
Hindalco Industries, an aluminium producer that gets most of its sales in North America and Europe, climbed the most in two months after Chairman Kumar Mangalam Birla outlined plans to spend Rs100 billion (Dh7.89 million) on projects this year. Infosys Technologies, a software exporter that gets two-thirds of its sales in the US, gained 2 per cent.
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 338.62, or 1.9 per cent, to 18,560.05, its highest close since February 2008. The S&P CNX Nifty Index on the National Stock Exchange increased 1.8 per cent to 5,576.95. The BSE 200 Index advanced 1.6 per cent to 2,384.35.
Comfort
"There's comfort coming back into the system after the US employment data," said K.K. Mital, who manages the equivalent of about $10.7 million (Dh39.35 million) as a New Delhi-based fund manager at Globe Capital Market. "That could lead to higher consumption and investment in equities."
Hindalco, which gets 76 per cent of its sales abroad, added 5 per cent to Rs178.95, the most since June 21. The company's ventures in India's Jharkhand and Orissa states are on schedule, Birla said at the company's annual general meeting on September 3.
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