Indian Stocks Climb Most in a Month; ICICI, HDFC Advance

By Pooja Thakur

Aug. 29 (Bloomberg) -- India's benchmark stock index rose the most in more than a month after the U.S. economy grew faster than estimated and India's inflation eased, lowering concern rising prices will crimp consumer spending.

ICICI Bank Ltd., the nation's second-biggest bank by assets, added 6.2 percent. HDFC Bank Ltd., the third-largest, rose 5.2 percent. Both stocks rose the most in four weeks.

``The GDP numbers from the U.S. and inflation coming in lower than expected has brought some relief to the market,'' said Jayesh Shroff, who helps manage about $3.5 billion at SBI Asset Management Co. in Mumbai.

The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 516.19, or 3.7 percent, to 14,564.53, the most since July 23. It was the biggest gainer among Asia's main bourses. The benchmark posted its first weekly gain in three climbing 1.1 percent. The S&P CNX Nifty Index on the National Stock Exchange added 146, or 3.5 percent, to 4,360.

U.S. stocks climbed the most in three weeks after the Commerce Department said gross domestic product grew at a 3.3 percent annual rate. The U.S. government's initial estimate of economic growth was 1.9 percent last month and economists in a Bloomberg survey on average projected 2.7 percent. The data follows an unexpected advance in durable goods orders that helped boost stocks yesterday.

India's inflation rose 12.40 percent in the week to Aug. 16, the government said yesterday after the close of markets. Economists were expecting a 12.78 percent gain. Inflation easing may decrease the likelihood the central bank will raise interest rates for a fourth time since June.

Economy Grew

Today, the government said the economy expanded 7.9 percent in the three months to June 30 from a year earlier. Analysts expected gross domestic product to increase 8 percent.

ICICI rose to 671.90 rupees. HDFC Bank climbed to 1,276.70 rupees. Both stocks gained the most since Aug. 5. State Bank of India, the nation's largest lender, advanced 7.2 percent to 1,403.85 rupees, the most since July 23. Housing Development Finance Corp., the biggest mortgage lender, added 4.3 percent to 2,343.50 rupees, the most since Aug. 1.

Overseas investors sold a net 5.06 billion rupees ($125.4 million) of Indian stocks on Aug. 26, increasing their net outflow this year from equities to $7.17 billion, the nation's market regulator said.

The following are among the most active stocks traded on the Bombay and National Stock Exchanges. Stock symbols are in parentheses after company names:

Bharat Heavy Electricals Ltd. (BHEL IN) added 78.30 rupees, or 4.8 percent, to 1,707.85, the most since July 23. India's biggest power-equipment maker, said it won an 11.55 billion rupee ($264 million) order from GVK Power & Infrastructure Ltd.

Gammon Infrastructure Ltd. (GISP IN) rose 1.3 rupees, or 1.4 percent, to 95.25, the most since Aug. 11. The Indian maker of roads and dams climbed the most in more than seven weeks in Mumbai after winning an order to build and operate a bridge that may cost an estimated 8 billion rupees.

Nectar Lifesciences Ltd. (NLSC IN) rose 12.9 rupees, or 3.7 percent, to 363.80. The Indian drugmaker approved selling warrants worth $2.5 million at a board meeting yesterday. Nectar will also split each share into 10, the company said.

Tata Steel Ltd. (TATA IN) gained 28.75 rupees, or 5 percent, to 600.70, the most since July 30. India's largest steel producer reported a better-than-expected 60 percent gain in first-quarter profit on increased prices and output of high-grade products. Net income rose to 39 billion rupees in the quarter ended June 30 from 24.3 billion rupees a year earlier, the steelmaker said yesterday. Five analysts in a Bloomberg survey estimated a median profit of 19.7 billion rupees.

Wipro Ltd. (WPRO IN) added 18.3 rupees, or 4.4 percent, to 432.40, its biggest gain since Aug. 1. India's third-largest computer-services provider may buy a German competitor that advises companies running business software made by SAP AG. The company will have sales of about $100 million to $200 million, Wipro Chairman Azim Premji said in a Bloomberg Television interview in London yesterday.

To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net