India’s benchmark stock index rose
for a second day, led by software companies that gained on
speculation demand for technology will increase as the U.S.
economic recovery gathers pace.
Tata Consultancy Services Ltd., the nation’s largest
software exporter, climbed 1.2 percent, set for its best
performance in a week. Infosys Technologies Ltd. rose for a
fourth session, adding 0.6 percent to 3,388.70 rupees.
“Technology stocks are seen as offering value because
sentiment toward the U.S. economy seems to be improving,” said
Deven Choksey, managing director at Mumbai-based K.R. Choksey
Shares Securities Pvt., which manages $125 million in assets.
“The markets are also up as there is some amount of short-
covering ahead of the derivatives expiry on Dec. 30.”
The Bombay Stock Exchange’s benchmark Sensitive Index, or
Sensex, climbed 84.48, or 0.4 percent, to 20,158.14 as of 11:36
a.m. in Mumbai. Companies on the measure are valued at an
average 19.1 times estimated earnings, compared with a recent
peak of 20.1 times on Nov. 5. The index rose 1.1 percent last
The SP CNX Nifty Index on the National Stock Exchange
gained 0.4 percent to 6,035.40. The BSE 200 Index saw a similar
move to 2,493.41.
Hero Honda Motors Ltd., the nation’s biggest motorcycle
maker, jumped as much as 1 percent after the Mint daily, without
saying where it got the information, said the Hero Group may
raise a yen-denominated loan to fund a buyout of Honda Motor
Co.’s holding in the venture.
Hero Honda advanced 0.5 percent to 1,941 rupees, set for
its biggest gain in a week. The Hero Group’s spokesman Ashwani
Sharma declined to comment.
Wipro Ltd., the country’s third-largest software exporter,
advanced 0.4 percent to 485.55 rupees.
“Top-tier software companies have indicated sustainable
demand growth for fiscal year 2011,” said Shashi Bhusan, an
analyst at Prabhudas Lilladher Pvt. in Mumbai. “Lead indicators
are suggesting that the U.S. economy is recovering well.”
Americans increased spending in November for a fifth month
and companies stepped up orders for equipment, adding to
evidence that the world’s largest economy is gaining momentum
heading into 2011. U.S. Labor Department figures last week
showed jobless claims fell in the week ended Dec. 18 and the
number of people on unemployment benefit rolls dropped to a two-
ICICI Bank Ltd., the largest non-state lender, rose 1.3
percent to 1,132.25 rupees, while Larsen Toubro Ltd., the
biggest engineering company, added 0.8 percent to 1,976 rupees.
Foreign funds sold a net 999 million rupees ($22.2 million)
of Indian equities on Dec. 23, paring this year’s record flows
in equities to 1.3 trillion rupees, according to data on the
website of the Securities and Exchange Board of India.
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