BLBG:Indian Stocks End Four-Day Decline as Crude Drop Eases Concerns
Indian stocks climbed for the first time in five days as oil prices dropped, easing concerns rising energy costs will undermine efforts to curb inflation and lower interest rates.
Reliance Industries Ltd. (RIL), operator of the world’s largest oil-refining complex, added 1.9 percent. Tata Motors Ltd. (TTMT), the largest truckmaker and owner of Jaguar Land Rover, rose for the first time in eight days. State Bank of India, the country’s biggest lender, gained the most in a month.
The BSE India Sensitive Index (SENSEX), or Sensex, advanced 1.7 percent to 17,734.16, according to preliminary closing price at 3:30 p.m. in Mumbai, ending a four-day 5.3 percent decline. Oil dropped for a second day today, losing as much as 0.6 percent to $107.89 a barrel, potentially cutting costs for companies in India, which imports three-quarters of its oil. Foreigners (FIINNET) poured a record $1.55 billion into local shares on Feb. 24, taking total investments this year to $7.1 billion, according to the market regulator.
“A high oil price would be a negative for India in the long term, but as long as it doesn’t exceed $130, it shouldn’t have too significant an impact on the budget deficit and inflation numbers,” Khiem Do, Hong Kong-based head of multi- asset strategy at Baring Asset Management Ltd., which oversees $46 billion, said by phone today.
The Sensex had its first weekly loss in eight last week on concern oil-price increases may stoke inflation and prevent the Reserve Bank of India from easing policy. Consumer prices rose 7.65 percent in January from a year earlier, exceeding the 6.55 percent advance in the benchmark wholesale-price index.
The rate cycle has peaked, RBI Deputy Governor Subir Gokarn said on Feb. 14 after data showed inflation eased in January to the lowest in more than two years.
The S&P CNX Nifty (NIFTY) Index on the National Stock Exchange of India gained 1.8 percent to 5,375.50. The BSE 200 Index (BSE200) soared 2.3 percent to 2,184.04.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
