Indian shares stick to growth path on demand optimism

Mumbai:  India's stocks rose, driving the benchmark index higher for a third week, amid optimism companies will benefit from increasing demand.

Bharti Airtel Ltd., the nation's largest mobile-phone operator, climbed 3.9 per cent, driving its weekly advance to 5.1 per cent, after saying it's in the process of buying a 22 per cent stake in Zain's operations in Zambia. Bharat Heavy Electricals Ltd., the biggest power-equipment maker, rose for a second day as it reported better-than-estimated earnings.

Gains

The Bombay Stock Exchange's Sensitive Index, or Sensex, climbed 1 per cent last week, and advanced 17.83, or 0.1 per cent, to 18,130.98 yesterday, when it swung between gains and losses at least 15 times.

"The overall trend is positive," said D.K. Aggarwal, who manages about $100 million (Dh367 million) as chairman of SMC Wealth Management Services Ltd. in New Delhi. "The result of the European banks stress test is being keenly watched. That will determine the course of the market."

The S&P CNX Nifty Index on the National Stock Exchange rose 0.1 per cent to 5,449.10. The BSE 200 Index fell 0.1 per cent to 2,304.98.

Bharti surged to Rs313.8. Bharat Heavy climbed 1.8 per cent to Rs2,460.2, taking its advance last week to 0.9 per cent.

HDFC Bank Ltd., the third-biggest lender, declined 0.9 per cent to Rs2,038.6.