Mumbai: India's benchmark stock index rose, reversing losses, as concern eased that deficits in Europe may cause a global economic recovery to falter. Infosys Technologies Ltd. led gains in software exporters.
Infosys, India's second-largest, climbed 2.9 per cent. Tata Consultancy Services Ltd. the biggest, advanced 1.5 per cent. India's software service companies get a third of their sales in Europe. Grasim Industries Ltd. led cement makers higher after January sales surged 15 per cent.
"Investors are thinking the European concerns have been overplayed and things are looking a little more stable now," said Kishor Ostwal, managing director of CNI Research (India) Ltd., a publicly traded equities research provider in Mumbai. "They are also betting on the India growth story."
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 106.57, or 0.7 per cent, to 16,042.18, reversing an earlier drop of as much as 0.5 per cent. Yesterday's advance trims losses from a January 6 peak to 9.4 per cent, retreating from the 10 per cent slide that defined a correction.
The S&P CNX Nifty Index on the National Stock Exchange added 0.7 per cent to 4,792.65. The BSE 200 Index increased 0.7 per cent to 2,035.30.
Infosys climbed 2.9 per cent to Rs2,473.8, the most since January 13. Tata Consultancy advanced 1.5 per cent to Rs735.15. Wipro Ltd., the third-biggest software services provider, added 2.9 per cent to Rs654.3. Grasim, India's third-biggest cement maker, surged 4.7 per cent to Rs2,678.55.
