Mumbai: India's benchmark stock index rose, capping its biggest weekly gain this year, as an increase in tax collections signalled company earnings may follow suit.
DLF, India's biggest developer, climbed the most in almost two months. India's revenue collection from companies rose 10.9 per cent in the April to February period from a year ago, the finance ministry said in a statement yesterday. Jaiprakash Associates, a builder of dams, roads and bridges, advanced to the highest level in six weeks.
"Confidence in the economy is reinforced," said D.K. Aggarwal, who manages funds for wealthy individuals as chairman of SMC Wealth Management Services Ltd. in New Delhi. "Corporate earnings will show a better performance. India is the favoured destination of foreign investors."
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 22.79, or 0.1 per cent, to 16,994.49. The measure added 3.4 per cent last week, its steepest weekly climb since December 24. The S&P CNX Nifty Index on the National Stock Exchange rose 0.2 per cent to 5,088.70. The BSE 200 Index increased 0.3 per cent to 2,151.67.
Meanwhile, Asia's third-biggest economy may expand 8.2 per cent in the 12 months from April 1, from an estimated 7.2 per cent this year, India's finance ministry forecast last week. Domestic consumption is driving India's economic recovery, Hewitt Associates, an Illinois-based human resources adviser said on Thursday.
