Indian stocks advanced for a second day, with the benchmark indexes climbing to a record amid speculation the government will announce measures to boost growth when it presents the federal budget this week.
Infosys Ltd. (INFO) paced gains for software exporters as the rupee fell the most in more than two weeks. Texmaco Rail & Engineering Ltd. (TXMRE) jumped to a record before tomorrow’s railway budget. Tata Power Co. (TPWR), India’s biggest electricity generator outside state control, rose the most in a week on a planned stake sale in an Indonesian mine for $ 250 million.
The S&P BSE Sensex (SENSEX) increased 0.4 percent to a record 26,063.56 as of 11:02 a.m. in Mumbai, boosting its rally in 2014 to 23 percent. International investors have poured $ 10.5 billion into local equities this year on expectations Prime Minister Narendra Modi will help spur an economy growing at near the slowest pace in a decade. The government presents its federal budget on July 10.
“This budget has been keenly awaited as a vision document and depending on what the outcome is, markets will take their cue,” David Pezarkar, chief investment officer for equities at BOI AXA Investment Managers Pvt., said in an interview with Bloomberg TV India.
Shares of commercial-vehicle maker Ashok Leyland Ltd. (AL) gained 2.5 percent to 37 rupees. The company raised 6.66 billion rupees ($ 111 million) selling shares to large investors at 36 rupees apiece, it said in an exchange filing after markets closed on July 4.
The Sensex is valued at 15.9 times projected 12-month profits, the most expensive level in more than three years. The MSCI Emerging Markets Index is trading at a multiple of 11.1.
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