Mumbai: India's stocks rose, with the benchmark index surpassing a key level for the first time in more than 2 1/2 years, as the economy's expansion lures funds.
Larsen & Toubro Ltd., the nation's biggest engineering company, rose to 30-month high. Refiners Indian Oil Corp. and Hindustan Petroleum Corp. climbed after raising gasoline prices. Global investors have poured an unprecedented $24 billion this year into the nation's stocks and bonds, more than in the previous eight years, exchange data show.
"The rally has really surprised us," said D.K. Aggarwal, who manages about $100 million as chairman of SMC Wealth Management Services Ltd. in New Delhi. "All the economic indicators are pointing towards robust growth and increased corporate earnings. Foreign investors are bullish on India."
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 96.61, or 0.5 per cent, to 20,002.71 at 10:08am in Mumbai, surpassing 20,000 for the first time since January 2008.
The S&P CNX Nifty Index on the National Stock Exchange rose 0.8 per cent to 6,026.05. The BSE 200 Index increased 0.7 per cent to 2,545.80.
Larsen, Indian Oil
Larsen & Toubro advanced 1.7 per cent to 2,033.7 rupees, poised for its highest close since January 2008. Indian Oil increased 1.3 per cent to 447 rupees after raising the prices of petrol in New Delhi to 51.83 rupees a liter from 51.56 rupees effective on Tuesday. Hindustan Petroleum added 0.9 per cent to 549.3 rupees.
Wockhardt Ltd. soared 3 per cent to 289.5 rupees after Chairman Habil Khorakiwala on Monday said the drugmaker expects sales to increase as much as 20 per cent in 2010.
India's gross domestic product expanded 8.8 per cent last quarter from a year earlier, the most among major economies after China and Brazil.
Global funds bought a net 17.2 billion rupees ($373.3 million) of Indian equities on September 17, taking total investments in the stocks this year to 735.4 billion rupees, according to the nation's market regulator.
Inflows from overseas reached a record 834.2 billion rupees in 2009, exceeding the high set two years ago in local currency terms, as the biggest advance in 18 years lured foreign funds. They sold a record 529.9 billion rupees of shares in 2008, triggering a record annual decline.
