India Stocks Gain Most in a Week on HDFC Bank Earnings, Europe
July 19 (Bloomberg) -- India’s benchmark stock index climbed the most in a week as lenders rallied after the third biggest bank reported earnings that beat estimates and a rally in European shares eased investor concern.
HDFC Bank Ltd. erased losses of as much as 1.2 percent after its earnings report. Sterlite Industries (India) Ltd., the biggest copper and zinc producer, climbed for the second day as metal prices rose. Tata Consultancy Services Ltd., the largest software services exporter, surged 1.9 percent after earnings of International Business Machines Corp. beat forecast.
The Bombay Stock Exchange Sensitive Index, or Sensex, rose 160.64, 0.9 percent, to 18,667.68 at 2:06 p.m. in Mumbai. The gauge, which fluctuated between gains and losses at least eight times, rallied after Stoxx Europe 600 Index rose 0.7 percent in London. The Sensex is the second-worst performer among major indexes in the world’s 10 biggest markets, as the central bank raised rates eight times in the past year to tackle inflation.
“Some traders who had gone short have been forced to cover their positions after European shares open positive and HDFC Bank result beat estimates,” said Kishor Ostwal, managing director of CNI Research (India) Ltd., a publicly traded equities research provider in Mumbai. “IBM results have boosted software stocks.”
The S&P CNX Nifty Index on the National Stock Exchange of India Ltd. added 0.9 percent to 5,618.30 and its July futures traded at 5,631.75. The BSE 200 Index rose 0.8 percent.
HDFC Bank rose 0.3 percent to 516.75 rupees, poised for a record close. The lender reported profit of 10.8 billion rupees ($242 million) in the quarter ended June 30 compared with 10.7 billion rupees estimated by 24 analysts in a Bloomberg survey.
State Bank of India, the biggest, added 1 percent to 2,501 rupees and ICICI Bank Ltd. rose 1.2 percent to 1,060.15 rupees.
Sterlite advanced 2 percent to 166.9 rupees. Copper and zinc rallied for a third day in London on expectations Chinese imports may climb in the second half to replenish stockpiles. Three-month delivery copper gained as much as 0.5 percent on the London Metal Exchange. Hindalco Industries Ltd., an aluminum producer, rose 0.8 percent to 183.85 rupees, extending yesterday’s 3.3 percent surge.
Tata Consultancy Services increased 1.9 percent to 1,146.4 rupees and its July futures traded at 1,146.55 rupees. Infosys Ltd., the second-largest software services provider, rose 1.3 percent to 2,748.6 rupees, paring a seven-day 9.4 percent slide.
IBM, the world’s biggest computer-services company, posted revenue that beat analysts’ estimates and boosted its full-year earnings forecast late yesterday as companies bought more software and equipment.
Overseas funds bought a net 1.45 billion rupees of Indian equities on July 15, raising total investment in stocks this year to 93 billion rupees, according to data on the website of the Securities and Exchange Board of India.
--With assistance from Santanu Chakraborty in Mumbai. Editor: Ravil Shirodkar
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