By -
Jun 9, 2014
Indian stocks climbed to an all-time
high as engineering companies and cement makers advanced amid
expectations the government will boost spending and accelerate
approvals for roads, ports and power projects.
Reliance Infrastructure Ltd. (RELI) rallied to the highest price since January 2011 after the company’s Mumbai Metro rail began service yesterday. Larsen & Toubro Ltd. (LT) increased to a record. Cement producer Grasim Industries Ltd. jumped the most in eight months, pacing a rally among its peers.
The S&P BSE Sensex (SENSEX) added 0.8 percent to a record 25,598.03 at 10:40 a.m. in Mumbai. It rose 4.9 percent last week as energy companies jumped on optimism Prime Minister Narendra Modi will agree to increase natural-gas prices by the month-end. Modi’s party won the strongest electoral mandate in three decades on a pledge to spur an economy where $230 billion of projects have been stalled for want of state clearances.
“This rally is fueled by expectations that the government will undertake reform measures, not only legislative but also executive reforms, which will change the way the bureaucracy works,” David Pezarkar, chief investment officer for equities at BOI AXA Investment Managers Pvt., said in an interview today with Bloomberg TV India in Mumbai.
Foreigners have bought a net $16.1 billion of local shares since Sept. 13, when the BJP named Modi its candidate for prime minister. The inflows have helped lift the Sensex 30 percent in the period, data compiled by Bloomberg show.
The Sensex has climbed 20 percent this year and is valued at 15.6 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 10.9.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Ravil Shirodkar, Matthew Oakley
Reliance Infrastructure Ltd. (RELI) rallied to the highest price since January 2011 after the company’s Mumbai Metro rail began service yesterday. Larsen & Toubro Ltd. (LT) increased to a record. Cement producer Grasim Industries Ltd. jumped the most in eight months, pacing a rally among its peers.
The S&P BSE Sensex (SENSEX) added 0.8 percent to a record 25,598.03 at 10:40 a.m. in Mumbai. It rose 4.9 percent last week as energy companies jumped on optimism Prime Minister Narendra Modi will agree to increase natural-gas prices by the month-end. Modi’s party won the strongest electoral mandate in three decades on a pledge to spur an economy where $230 billion of projects have been stalled for want of state clearances.
“This rally is fueled by expectations that the government will undertake reform measures, not only legislative but also executive reforms, which will change the way the bureaucracy works,” David Pezarkar, chief investment officer for equities at BOI AXA Investment Managers Pvt., said in an interview today with Bloomberg TV India in Mumbai.
Foreigners have bought a net $16.1 billion of local shares since Sept. 13, when the BJP named Modi its candidate for prime minister. The inflows have helped lift the Sensex 30 percent in the period, data compiled by Bloomberg show.
The Sensex has climbed 20 percent this year and is valued at 15.6 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 10.9.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Ravil Shirodkar, Matthew Oakley
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