Mumbai: India's stocks rose the most this week as investors speculated domestic economic growth can be sustained even as borrowing costs rise and a sovereign debt crisis in European slows down a global recovery.
Tata Motors Ltd, the owner of Jaguar Land Rover, climbed 2.9 per cent after May sales rose. Developing-nation stocks are probably "past the worst point," according Antoine van Agtmael, the investor who coined the term "emerging markets" in 1981. Reliance Communications Ltd, a mobile-phone operator, surged the most in more than a year after saying it received proposals from "reputed international telecom companies expressing interest in acquiring a strategic equity stake."
"Our market is likely to remain unaffected by the European crisis," said D.K. Aggarwal, who oversees funds for rich individuals as chairman of SMC Wealth Management Services Ltd in New Delhi. "Indian companies are likely to do much better" and the Reserve Bank of India "is unlikely to take any drastic steps." Aggarwal, who didn't disclose the value of assets he manages, said he prefers carmakers' shares.
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 169.81, or 1 per cent, to 16,741.84, the most since May 28. The S&P CNX Nifty Index on the National Stock Exchange rose 1 per cent to 5,019.85. The BSE 200 Index increased 1 per cent to 2,130.19.
Tata Motors added 2.9 per cent to Rs746. The maker of the world's cheapest car, the Nano, sold 41 per cent more vehicles in May from a year earlier.
