Bloomberg News

India’s Sensex Gains as Debt Deal Counters Inflation Concerns

October 28, 2011

Oct. 28 (Bloomberg) -- The BSE India Sensitive Index climbed after Europe’s leaders agreed to expand a bailout fund to stem the region’s debt crisis and the U.S. economy grew, countering concern the South Asian nation’s inflation is accelerating.

The Sensex gained 2.2 percent to 17,671.86 at 9:12 a.m. local time in Mumbai, while the NSE S&P CNX Nifty Index jumped 2.7 percent to 5,341.9. The markets were closed yesterday for a public holiday and opened for shortened trading on Oct. 26.

European leaders agreed yesterday to expand a bailout fund to halt the region’s sovereign-debt crisis. The U.S. economy grew at a 2.5 percent annual rate in the third quarter, data showed yesterday, the fastest rate in a year as Americans reduced savings to boost purchases and companies stepped up investment in equipment and software. India’s food inflation rate quickened at the fastest pace in more than six months in the week ended Oct. 16, the Commerce Ministry said yesterday.

The MSCI Asia Pacific Index gained 4.5 percent since Indian

stock markets last traded a full day on Oct. 25. The Sensex rose 1.9 percent that day, after the Reserve Bank of India raised interest rates for the 13th time since the start of 2010 and signaled it’s nearing the end of monetary tightening as growth slows.

To contact the editor responsible for this story: Matthew Oakley at moakley@bloomberg.net


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