Mumbai: Indian stocks rose for the second week. Hindustan Unilever, a household products maker, climbed to a four-month high after its board said it will consider buying back shares.
Maruti Suzuki India Ltd., the biggest carmaker, rose to the highest in more than a month after the Economic Times said automakers will step up investment to meet demand. Hindalco Industries Ltd., India's biggest aluminum producer, climbed, reversing an earlier decline of as much as 1.6 per cent, after reporting an eightfold gain in full-year group profit.
"Investors should look out for arbitrage opportunities like delisting, buyback of shares or a corporate restructuring for short-term gains," said Jagannadham Thunuguntla, chief strategist at SMC Capitals Ltd. in New Delhi. Thunuguntla declined to name specific stocks.
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 95.36, or 0.6 per cent, to 17,117.69, erasing an earlier decline of as much as 0.3 per cent.
The index dropped 3.5 per cent last month as foreign investors sold a net Rs94.4 billion ($2 billion-Dh7.3 billion) of stocks in May, the worst month since October 2008, following the collapse of Lehman Brothers Holdings Inc.
The Sensex rose for a third day, extending its weekly advance to 1.5 per cent, its second such period of gains. The S&P CNX Nifty Index on the National Stock Exchange rose 0.5 per cent to 5,135.50. The BSE 200 Index increased 0.4 per cent to 2,173.
