The Sensex, trading at 18 times estimated earnings, has surged 87 percent from this year’s low on March 9, outperforming the BRIC countries that also include Brazil, Russia and China.
The gains helped Indian companies raise 55 billion rupees from the sale of shares to large investors in the second quarter.
Two Tata Group companies started raising funds to expand their businesses. Tata Steel Ltd., India’s biggest steelmaker, raised $500 million in a sale of global depositary receipts for its domestic expansion and mining ventures overseas, while Tata Power Ltd., the largest electricity generator outside state control, is seeking $335 million from the sale of shares overseas to build new plants.
Bharti Airtel Ltd., India’s No. 1 mobile-phone operator, fell 1.1 percent to 814.10 rupees, the only stock that dropped on the Sensex. The stock declined after it reported revenue that missed analyst estimates after it added more low-spending users in the nation’s smaller towns and villages.
WIPRO, TATA CONSULTANCY
Wipro Ltd. gained after the stock’s rating was upgraded at Morgan Stanley. It joined software companies Tata Consultancy Services Ltd. and Infosys Technologies Ltd. in beating analysts’ earnings forecasts.
Wipro added 1.2 percent to 456.50 rupees. India’s third- largest software exporter yesterday reported profit that exceeded analyst estimates after the company froze pay and won more orders, signaling demand for India’s software services may be returning as the global recession eases.
Of the 138 companies covered by Citigroup, the 19 that have reported profits have beaten estimates by 16 percent, analysts led by Aditya Narain said in a July 22 note.
The “earnings season in India has started on a largely positive note,” the Nomura analysts said. “While we are waiting for the earnings season to end, overall analyst upgrades in earnings across sectors could mean a revision in our year- ahead Sensex target of 16,400.”
STRONG SENSEX
