As PM sees rupee recovery the Sensex gains 219 points . HDFC Bank rises the most in 20 months, TCS climbs to a record, HUL advances the most in more than a month. Mumbai: Indian equities climbed, with the benchmark index, or Sensex, halting five weeks of declines, after Prime MinisterManmohan Singh said policy changes in the past year will help stem the rupee’s slide and as oil prices fell.
HDFC Bank Ltd gained the most in 20 months, driving up a gauge of 13 lenders to the biggest two-day climb in two months. Tata Consultancy Services Ltd (TCS), the nation’s largest software exporter, climbed to a record. Hindustan Unilever Ltd (HUL) had the biggest increase in more than a month. Oil slid as prospects of an imminent strike against Syria diminished.
The S&P BSE Sensex climbed 1.19%, or 218.68 points, to 18619.72 at the close. The gauge rose 0.5% this week, paring the month’s loss to 3.8%, the most since February. Stocks fell amid concern measures to support the rupee may further weaken an economy that grew at a decade-low pace in the year ended March. Steps to tackle current-account and budget deficits, curb some subsidies and speed up stalled projects will help the currency recover, Singh said in parliament in New Delhi.
“Stocks gained on anticipation the government may take further steps to arrest the rupee’s decline,” Jitendra Panda, head of broking at Capital First Ltd, said by telephone from Mumbai. Decline in global oil prices helped sentiments.
HDFC Bank jumped 3.8% to Rs.594, the most since December 2011. State Bank of India, the largest, advanced 2.1% to Rs.1,518.95. The S&P BSE Bankex index gained 3.3% in two days, the most since 1 July.
Among other sectoral indices, the S&P BSE Consumer Durables index rose 1.90% to be the biggest gainer, while the S&P BSE Metal index lost 2.05% and was the biggest loser.
TCS surged 4.4% to Rs.2,033.20, the most since its 2004 debut. Wipro Ltd increased 2.1% to Rs.483.6. HUL jumped 4% to Rs.631.45, its highest since 1 August. Reliance Industries Ltd (RIL), owner of the world’s largest refining complex, rose 1% to Rs.853.85, extending a two-day, 5.2% gain.
Among losers were Jindal Steel and Power Ltd that lost 8.85% to Rs.221.90 and Sesa Goa Ltd which declined 2.70% to Rs.187.30.
The National Stock Exchange’s broader 50-share index, the Nifty, gained 1.16%, or 62.75 points, to 5,471.80.
The rupee advanced 1.4% to 65.7050 per dollar. It rallied the most since 1986 on Thursday after the central bank said it will sell dollars to the largest oil importers to cool foreign-exchange demand. The currency plunged 8.1% this month, the most since March 1992, making imports more expensive for a nation that buys 80% of its oil. Brent in London dropped a second day, losing 0.3% to $114.80 a barrel.
The currency’s slide has been fuelled by concern slowing growth will deter foreign funds as the US prepares to reduce stimulus. Global investors have pulled a combined $2.4 billion from local stocks and bonds this month, exchange data show.
“We need out-of-the-box thinking to restore confidence in the economy,” Madhusudan Kela, chief investment strategist at Reliance Capital Ltd, which runs India’s second-biggest mutual fund, said in an interview on Bloomberg TV India on Friday. “Growth must be priority for the government.”
A government report on Friday showed the economy expanded 4.4% in the quarter ended June, the slowest pace since 2009 and less than the median 4.7% estimated by economists in a Bloombergsurvey. The data was released after trading ended.
The Sensex has fallen 4.2% this year. The slide has reduced its valuation to 13.2 times projected 12-month profit, compared with the average of 14.1 times in the past five years. Bloomberg
Manish Modi in New Delhi and Mint’s Ravindra Sonavane in Mumbai contributed to this story.