Mumbai: The Bombay Stock Exchange’s (BSE) key index rose for a second day on Wednesday, led by Tata Steel Ltd and Sterlite Industries India Ltd as metal prices climbed, and on expectations that increased stimulus spending in the US and China may boost profits.
Tata Steel gained 5.2%. Sterlite advanced 4.6%.
“Market movements have become a function of news flow and we have seen the results season behind us, so a large part of bad news is out of the system,” said Jayesh Shroff, who helps manage $2 billion (nearly Rs9,700 crore) in equities at SBI Asset Management Co. Ltd in Mumbai.
The Sensex rose 52.55 points, or 0.6%, to 9,201.85. The S&P CNX Nifty index on the National Stock Exchange (NSE) climbed 19.15 points, or 0.7%, to 2,803.05.
Governments around the world are boosting efforts to revive a global economy burdened by $1 trillion of losses tied to the credit crisis. The Standard and Poor’s 500 index added 1.6% on Tuesday as US treasury secretary Timothy Geithner said the government will step up efforts to fight the recession and as a report showed pending home sales rose in December for the first time since August.
Sterlite climbed 4.6% to Rs279.30. Copper traded near a one-week high in London on speculation that government spending plans in China and the US, the world’s largest copper users, will spur economic growth and boost demand for the industrial metal.
Copper for three-month delivery rose as much as 2.2% to $3,406.75 a tonne on the London Metal Exchange (LME), the highest intraday price since 28 January. Among other LME-traded metals, aluminium was up 1.6% at $1,427 a tonne.
BSE’s metal index climbed 3% to 4,944.49 points helped by steel stocks, including Tata Steel and Steel Authority of India Ltd (SAIL). SAIL added 3.9%, the most in a week, to Rs79.20. Tata Steel rose 5.2%, the most since 14 January, to Rs179.55. The share prices are composite of BSE and NSE rates.
Maytas Infra Ltd fell Rs3.30, or by its 5% limit for a 19th day, to Rs63.25. The company controlled by the family of arrested Satyam Computer Services Ltd founder B. Ramalinga Raju said it plans to form a panel that will include stakeholders and outside experts to get managerial assistance.