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Posted : Sunday, July 6, 2008
NEW DELH: Indian stocks rose for the
first time in four days, led by software exporters Infosys Technologies Ltd and
Wipro Ltd, on expectations the decline in the rupee will boost earnings from
overseas.
The Bombay Stock Exchange's Sensitive Index, or Sensex,
rose 702.94, or 5.4 per cent, to 13,664.62, the biggest jump since March 25.
India's key benchmark has plunged more than 35 per cent from its record in
January and India's overall market value yesterday slipped below $1 trillion for
the first time in a year.
``From a three-year perspective, these
levels could give a decent return even if the economy grows at around 6 per
cent'' a year, said Tridib Pathak, chief investment officer at Lotus India Asset
Management Co, which manages assets equivalent to about $1.8 billion.
Infosys Technologies, India's second-largest software exporter, rose
6 per cent, the most in more than two months, to 1,820.6. Reliance Industries
Ltd, which gets more than half its revenue from overseas markets according to
data compiled by Bloomberg, gained 4.9 per cent, the most in more than three
months, to 2,143.1.
Satyam Computer Services Ltd, the nation's
fourth-largest software exporter, rose 7.2 per cent to 463.3, the highest since
April 29, after the company said it aims to have $1 billion of sales from
Europe.
IT Index surged 227.80 points or 5.77 per cent at 4,177.75
due to buying in Aptech, Financial Tech, Satyam, Patni Computer, Infosys, I-Flex
Solution and Wipro, which gained 6-12 per
cent.
US Revenue
Indian
technology firms such as Infosys get more than 50 per cent of their revenue in
US dollars. A stronger dollar increases the amount of Indian currency they
receive. India's rupee fell 7.3 per cent last quarter, the biggest decline in a
decade. The currency yesterday fell to the lowest in 15 months as crude imports
widened the trade deficit to a record.
India's market value has lost
$919 billion from its record on Jan 7 as overseas equity investors pulled $6.37
billion of funds out of the country so far this year. Net sales accelerated
after the central bank raised interest rates twice last month because oil prices
pushed inflation to a 13-year high.
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