The Bombay Stock Exchange’s (BSE) key index climbed the most since December on Friday, led by financial companies, after Bank of America Corp. said it’s profitable and Japan and China signalled they will increase efforts to bolster growth.
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ICICI Bank Ltd surged more than 8% for a second day to its biggest weekly advance in 12. State Bank of India (SBI) climbed 4.6%. Asian financial stocks had their best week since 19 December as Bank of America joined JPMorgan Chase and Co. and Citigroup Inc. in saying January and February were profitable.
The Sensex rose 412.86 points, or 5%, to 8,756.61, the biggest gain since 10 December. The measure rose 5.2% this week, the most in six. The S&P CNX Nifty index on the National Stock Exchange added 101.80 points, of 3.9%, to 2,719.25.
“The market is getting support from banks,” said Shashank Khade, who helps manage $400 million (Rs2,068 crore) at Kotak Securities Ltd in Mumbai. “Indian banks had gone down substantially in terms of valuations and they are recovering now.”
The global financial crisis has caused write-downs and losses at institutions worldwide to swell to more than $1.2 trillion.
ICICI Bank rose 8.6% to Rs308.65, after surging 8.1% on Thursday. SBI rose by the most in more than a month to Rs953.05. HDFC Bank Ltd rose 4.5% to Rs834.25. Housing Development Finance Corp. Ltd rose 6.8% to Rs1,377.50.
Reliance Industries Ltd surged after a report that the company may start producing gas from its biggest field next month. The stock rose 6.8% to Rs1,284.25.
Indian software exporters, which get about half their revenue from the US, gained for the second day as prospects for banks brightened in the world’s biggest economy. Tata Consultancy Services Ltd rose 6.2% to Rs506.85. Infosys Technologies Ltd advanced 5.6% to Rs1,297.05. Wipro Ltd gained 6.1% to Rs224.90.
Governments from the US to Japan and China have stepped up efforts to avert what the World Bank predicts will be the first global economic contraction since World War II. Prime Minister Taro Aso ordered a third spending plan aimed at easing Japan’s recession.
China can add at any time to 4 trillion yuan (Rs30.92 trillion) of stimulus measures to revive the world’s third biggest economy, Premier Wen Jiabao told reporters in Beijing. He reaffirmed China’s target for 8% growth in 2009.