Software stocks lead BSE index recovery [Times of Oman]
(Times of Oman Via Acquire Media NewsEdge) Mumbai: Most Indian stocks rose, with the benchmark index climbing for the third day, as producers of capital goods and software companies advanced.
Bharat Heavy Electricals rallied for the fourth day, helping a gauge of machinery producers to its biggest three-day climb in about two months. Tata Consultancy Services had the biggest three-day gain in more than a month. Hexaware Technologies surged to an 11-month high after Baring Asia agreed to buy a stake.
About three stocks advanced for every that fell on the S&P BSE Sensex, which added 0.2 per cent to 18,558.13 at the close in Mumbai. A gauge of volatility climbed to its highest level since December 2011. The Sensex retreated 12 per cent from this year's high on July 23 through August 21 amid concern that steps to stem a record slide in the rupee will curb economic growth.
The fall dragged its valuation to 12.7 times projected 12-month earnings on August 21, the lowest reading in a month.
"There's lot of bottom-fishing going on," D. K. Aggarwal, managing director of SMC Investments & Advisors, said by phone from New Delhi. "We will see volatility as there's no clear-cut direction, with the uncertainty over the rupee and the United States Federal Reserve's policy."
Bharat Heavy soared 6.7 per cent to Rs123. The stock has rallied 22 per cent in the past four sessions, after falling to an eight-year low on August 20. The S&P BSE India Capital Goods Index rose 5.2 per cent the past three sessions, the most since July 2. The gauge's valuation fell to 12 times projected 12- month profits on August 21, the lowest since January 2012.
Hexaware surged 6.1 per cent to Rs128, its highest price since September 20. Baring will spend as much as $260 million to buy the stake in the company, according to a August 23 filing. Tata Consultancy added 0.7 per cent to Rs1,842 and Infosys rose 1 per cent to Rs3,030. Wipro rallied 2.4 per cent to Rs459.
Asian stocks advanced for a second day after a slump in US home sales eased speculation the Fed will trim economic stimulus next month. Asian nations are depleting their foreign reserves as they seek to buoy their currencies while investors pull billions of dollars from the region.
The Reserve Bank of India (RBI) said on August 22 that the nation's economic and monetary policies must focus on preserving financial stability.
The RBI began tightening monetary policy in July to slow depreciation in the currency. India's central bank raised two interest rates on July 15 and curbed lenders' access to cash. Policy makers also tightened limits on overseas investments by local companies and curbed gold imports.
The RBI said August 20 it will seek to limit increases in borrowing costs by buying long- dated government bonds.
Finance Minister P. Chidambaram said the nation won't raise interest rates and that it's too early to gauge the success of the steps to bolster the currency, the Times of India reported.
(c) 2013 Muscat Press and Publishing House SAOC Provided by Syndigate.info an Albawaba.com company
[ Back To Technology News's Homepage ]