Senxex climbs to 10-week high on economic growth

Mumbai: India's stocks climbed the most in 10 weeks, led by raw material producers as investors speculated economic expansion will boost profitability and demand.

Sterlite Industries Ltd gained as metal prices advanced and its rating was raised by Nomura Holdings Inc.

India's economy expanded at the fastest pace in two-and-a-half years last quarter, the government said yesterday. Maruti Suzuki India Ltd increased after reporting its highest ever monthly sales.

The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 234.75, or 1.3 per cent, to 18,205.87, its biggest gain since June 21.

The S&P CNX Nifty Index on the National Stock Exchange added 1.3 per cent to 5,471.85. The BSE 200 Index increased 1.4 per cent to 2,335.12.

"There is strong demand in the Indian economy and it's likely to continue," said D.K. Aggarwal, who manages about $100 million as chairman of SMC Wealth Management Services Ltd. in New Delhi.

"The global growth concern has eased a bit." Aggarwal said he's increasing his investments in drugmakers, carmakers, infrastructure and fast-moving consumer goods companies, without naming any.

Sterlite advanced 3.6 per cent to Rs156.5, its steepest one-day climb since July 21. Sterlite's rating was raised to ‘buy' from ‘neutral' by Prabhat Awasthi and Alok Kumar Nemani, analysts at Nomura, citing the view that recent declines in the stock price are overdone.

Tata Steel Ltd rose 2.9 per cent to Rs537.95, its highest close since August 9.