Hindustan Unilever Ltd., the biggest household products maker, rose 1 percent. State Bank of India climbed 1 percent, after earlier falling as much as 0.6 percent. Reserve Bank of India Governor Duvvuri Subbarao raised the benchmark repurchase rate by a quarter percentage point to 6.5 percent, as forecast by all but one of the 22 economists in a Bloomberg News survey.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, gained 141.79 or 0.7 percent, to 19,293.07 at 11:41 a.m. in Mumbai, set for the highest close since Jan. 12. The gauge earlier this month dropped more than 10 percent below the Nov. 5 record, a slump that signified a so-called correction to some investors and analysts, amid concern rising prices will lead to higher borrowing costs.
“It’s pleasant for the markets,” said Sudhakar Shanbhag, who manages $1.8 billion in assets as chief investment officer at Kotak Mahindra Old Mutual Life Insurance Ltd. in Mumbai. Shanbhag said he is turning “neutral” on banking and financial services shares from “marginally underweight” as the “uncertainty is over.”
The S&P CNX Nifty Index on the National Stock Exchange rose 0.8 percent to 5,786.7. The BSE 200 Index increased 0.7 percent to 2,390.64. The markets are closed tomorrow for a public holiday.
Sensex Valuations
Companies on the Sensex are valued at an average 18.3 times estimated earnings, down from last year’s high of 21.5 times in March, according to data compiled by Bloomberg. Hindustan Unilever rose 1 percent to 300.8 rupees. State Bank of India climbed 1 percent to 2,721.9 rupees.
Larsen & Toubro Ltd., the nation’s largest engineering company, climbed the most in two months after yesterday revealing plans to split into nine business units and five subsidiaries. Larsen advanced 2.3 percent to 1,697.35 rupees, set for its steepest climb since Dec. 1.
India’s central bank increased the benchmark interest rate to a two-year high and signaled further gains in borrowing costs after raising its inflation forecast.
Governor Duvvuri Subbarao increased the reverse repurchase rate to 5.5 percent from 5.25 percent, according to a statement from the Reserve Bank of India in Mumbai today.
Subbarao joined South Korea and Thailand in raising borrowing costs this month after boosting them six times in 2010, the most by any central bank in Asia. The move will buttress government efforts to cool inflation after Prime Minister Manmohan Singh unveiled plans to import onions from Pakistan and keep a ban on exports of lentils and edible oils.
Global funds bought a net 376 million rupees of Indian equities on Jan. 21, according to data on the website of the Securities and Exchange Board of India. Overseas investors have sold $892 million more shares than they have bought this month, heading for the first monthly outflow since May. For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment