Indian Stocks Rise; Infrastructure, Software Exporters Advance

Indian stocks rose, paring the benchmark index’s first weekly decline since early March, as Larsen & Toubro Ltd. led construction companies higher on speculation the government will boost public-works spending.

Larsen, India’s biggest engineering company, gained 5.7 percent. A media report said the government would set up a company to provide assistance to highway developers. Bharat Heavy Electricals Ltd., the largest power equipment maker, climbed 2.9 percent.

“There is a lot of expectation that a boost in infrastructure spending will be announced in the budget,” said Shashank Khade, who helps manage $300 million in assets at Kotak Securities in Mumbai. India’s budget is due July 6.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 256.36, or 1.8 percent, to 14,521.89. The gauge posted a 4.7 percent drop this week, its first weekly decline in 15.

The S&P CNX Nifty Index on the National Stock Exchange climbed 1.5 percent to 4,313.60. The BSE 200 Index added 1.8 percent to 1,761.66. Nifty futures for June delivery advanced 1.5 percent to 4,326.

Infosys Technologies Ltd. led software exporters higher after better-than-estimated economic reports in the U.S., their largest export market.

Larsen climbed 5.7 percent to 1,497.05 rupees. Bharat Heavy Electricals gained 2.9 percent to 2,088.85 rupees.

Road Finance

India plans to set up a road finance company that will provide debt to highway developers, ET Now television channel reported today.

Infosys, the nation’s No. 2 software developer, rose 2.6 percent to 1,770.40 rupees. Tata Consultancy Services Ltd., the largest, added 0.9 percent to 379.80 rupees.

U.S. reports showed jobless claims fell and that the manufacturing contraction in one region of the nation slowed. Indian software exporters derive more than half their revenue from the world’s biggest economy.

Overseas funds sold a net 2.27 billion rupees ($47 million) of Indian stocks June 17, according to the stock market regulator.

The following stocks were among the most active in Indian trading today:

Opto Circuits India Ltd. (OPTC IN) rose 7.5 percent to 161.4 rupees after posting a profit increase of 13 percent to 402.39 million rupees in the three months ended March 31.

Suzlon Energy Ltd. (SUEL IN) gained 11 percent to 111.05 rupees after the company said it plans to hold a meeting of its bond holders on June 25. The company has $121.37 million of bonds outstanding, it said in a statement yesterday.

Tata Steel Ltd. (TATA IN) added 6.3 percent to 412.55 rupees. India’s biggest steel producer said it raised prices of some products by as much as 750 rupees ($16) a metric ton as local demand increased. Prices of hot-rolled and cold-rolled products were increased by between 500 rupees and 750 rupees a ton in some regions, spokesman Sanjay Choudhry said by phone, without giving the percentage increase.