Bloomberg News

Most Indian Stocks Advance on Monetary Easing Speculation

May 29, 2012

Most Indian stocks rose, tracking Asian equities, amid speculation slowing economic growth may prompt the central bank to cut reserve requirements for banks.

Tata Consultancy Services Ltd. (TCS) and Infosys Ltd. (INFO), two of India’s biggest software exporters, added more than 1 percent each. Coal India Ltd. (COAL) rose the most in a week after profit at the largest producer of the fuel beat analysts forecasts.

The BSE India Sensitive Index (SENSEX), or Sensex, advanced 0.1 percent to 16,438.58, according to preliminary closing prices in Mumbai, its highest level since May 9. About three stocks advanced for two that slipped. The economy likely grew 6.7 percent in the year ended March 31, from 8.4 percent in the previous 12 months, according to a Bloomberg survey before a May 31 report. Brent crude has fallen 15 percent since March, reducing costs for a country that imports 80 percent of its oil

The Reserve Bank of India has reduced the amount of funds lenders must set aside as reserves twice this year. Last month, the bank cut its benchmark rate for the first time since 2009 while flagging price pressures from the currency and oil costs. Inflation unexpectedly quickened to 7.23 percent in April.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net


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