Mumbai: Indian stocks rose after President Pratibha Patil said the government aims to boost economic growth to 9 per cent by 2012, boosting expectations spending will be increased in its annual budget this week.
Jaiprakash Associates Ltd gained 1.6 per cent as Patil said the government will spend more on roads, power, agriculture and rural development to accelerate growth in the world's second- most populous country after China. Tata Steel Ltd. climbed 2.1 per cent.
"Growth will be strong in our economy, there is no reason to doubt that," said Avinash Gupta, an analyst at Bonanza Portfolio Ltd in New Delhi. "The government is likely to continue spending on infrastructure projects. This will lead to more jobs being created."
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 45.42, or 0.3 per cent, to 16,237.05. The S&P CNX Nifty Index on the National Stock Exchange rose 0.2 per cent to 4,856.4. The BSE 200 Index was little changed at 2,047.67.
Jaiprakash, a builder of dams, roads and bridges, rose 1.6 per cent to Rs131.85.
Gross domestic product (GDP) last expanded at a 9 per cent pace in 2008. The annual budget is due to be unveiled on Friday.
Tata Steel, the biggest producer of the alloy, gained 2.1 per cent to Rs572.75 (Dh45.41). Hindalco Industries Ltd., the biggest aluminum producer, rose 2.8 per cent to Rs154.15.
Shree Renuka Sugars Ltd, India's biggest refiner, rose 3.7 per cent to Rs186.55.
