post-comment
Comment
post-Abuse

Do you want to report this message as spam?

Sensex gains 75 pts on ADB forecast

15 Jan 10 12:06 PM
ET
The Bombay Stock Exchange (BSE) Sensex rose for a second day after the Asian Development Bank (ADB) said growth in the region will accelerate
this year, prompting speculation corporate earnings will increase. Raw material producers led the advance.

Sterlite Industries gained 1.4% after ADB president Haruhiko Kuroda said in Manila that Asian economic growth will accelerate this year. Tata Steel added 1.3%. ACC increased 0.9% to the highest level in two years.

“There is no doubt the economic recovery is getting stronger,” said Gopal Agrawal, head of equities at the local office of Mirae Asset Financial Group, which has $2.5 billion invested in India. “There has been a real pickup in industrial activity because of very strong consumer demand.”

The BSE Sensex gained 75.07, or 0.4%, to 17,584.87. The S&P CNX Nifty Index on the National Stock Exchange rose 0.5% to 5,259.90.

Sterlite added 1.4% to Rs 874.75. Copper for delivery in three months on the London Metal Exchange advanced as much as 0.7% to $7,540 a tonne.

Asia, excluding Japan, will grow 6.6% this year from 4.5% in 2009, the ADB’s Kuroda said. Confidence in the world economy strengthened as an acceleration in manufacturing and service industries signalled a sustained recovery from last year’s recession, according to a Bloomberg survey of users on six continents. India’s factory output grew at the fastest pace in 25 months in November , a January 12 government report showed.

Tata Steel climbed 1.3% to Rs 647.7. Metal prices also rose as the dollar dropped to a four-week low against a basket of six major currencies , bolstering the appeal of the commodity as an alternative investment . ACC rose 0.9% to Rs 955.1 Binani Cement gained 5.6% to Rs 80.35, the highest since April 2008.

Bharat Heavy Electricals, the biggest power-equipment maker, rose 2.1% to Rs 2,377.15.

Reliance Communications jumped 4.2%, its steepest climb in two months, to Rs 183. GTL Infrastructure soared 4.2% to Rs 44.65, its highest in seven months. Supreme Industries rose 3.7% to Rs 404.45. The maker of plastic products climbed to its highest in 18 years.