By Rajhkumar K Shaaw July 7 (Bloomberg) -- Indian stocks<http://www.bloomberg.com/apps/quote?ticker=SENSEX%3AIND>rose after Macquarie Group Ltd. raised its target for the benchmark index and said markets “overreacted” to the government budget yesterday, when the gauge slumped the most in six months.
Maruti Suzuki India Ltd.<http://www.bloomberg.com/apps/quote?ticker=MSIL%3AIN>, the maker of half the cars sold in India, advanced 5.5 percent. Grasim Industries Ltd. <http://www.bloomberg.com/apps/quote?ticker=GRASIM%3AIN>, the country’s third-biggest cement producer, soared 4 percent. Larsen & Toubro Ltd. <http://www.bloomberg.com/apps/quote?ticker=LT%3AIN>, the largest engineering company, advanced 1.9 percent. Macquarie raised its April 2010 target for the Sensitive Index by 20 percent to 18,000, saying it maintained a “positive stance” as the budget was “pro-growth.” “It may not be a great budget but it was broadly what the economy requires right now,” said Apurva Shah<http://search.bloomberg.com/search?q=Apurva+Shah&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>, head of research at Prabhudas Liladher Pvt. in Mumbai. The Bombay Stock Exchange’s Sensitive Index, or Sensex<http://www.bloomberg.com/apps/quote?ticker=SENSEX%3AIND>, rose 53.18, or 0.4 percent, to 14,096.58 at 11:48 a.m. in Mumbai. The S&P CNX Nifty <http://www.bloomberg.com/apps/quote?ticker=NIFTY%3AIND> Index on the National Stock Exchange added 0.1 percent to 4,170.7. The BSE 200 Index<http://www.bloomberg.com/apps/quote?ticker=BSE200%3AIND>was little changed at 1,714.82. The Sensex yesterday plunged 5.8 percent, the most since Jan. 7, as Finance Minister Pranab Mukherjee<http://search.bloomberg.com/search?q=Pranab+Mukherjee&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>unveiled the widest budget <http://indiabudget.nic.in/> deficit in 16 years and failed to lay out firm plans to sell state-run assets and ease foreign investment rules. “The 6.8 percent fiscal deficit put people off,” Shah said. “But later the finance secretary clarified that not all the deficit will be financed through market borrowings.” Mukherjee, seeking to convince investors that yesterday’s budget will help turn around the economy, is due to meet industry groups in New Delhi today after stocks tumbled and the rupee suffered its worst fall in almost six weeks. Macquarie said it sees “significant positives from a policy perspective” in the budget. Larsen, Jaiprakash Maruti rose 5.5 percent to 1,094.85 rupees. Grasim<http://www.bloomberg.com/apps/quote?ticker=GRASIM%3AIN>gained 4 percent to 2,391 rupees. Larsen & Toubro advanced 1.9 percent to 1,491.4 rupee. Jaiprakash Associates Ltd.<http://www.bloomberg.com/apps/quote?ticker=JPA%3AIN>, the biggest maker of dams, gained 1.5 percent to 196.1 rupees. Investor expectations for the budget were high after Prime Minister Manmohan Singh<http://search.bloomberg.com/search?q=Manmohan+Singh&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>won a resounding re-election in May, reducing his dependence on allies such as the communist parties who opposed asset sales and looser foreign investment policies during his first term. ITC Ltd. <http://www.bloomberg.com/apps/quote?ticker=ITC%3AIN>, India’s biggest cigarette company, rose 6.9 percent to 211.25 rupees, the highest since June 6, 2008, after Kotak Securities Ltd. upgraded the stock to “buy” from “add” and raised its target price to 235 rupees from 225 rupees. The budget left the excise duty on cigarettes unchanged, a “significant positive surprise for the street,” Kotak analysts Manoj Menon<http://search.bloomberg.com/search?q=Manoj+Menon&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>and Amrita Basu<http://search.bloomberg.com/search?q=Amrita+Basu&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>said in a research note today. -- National Youth Day Dr APJ Abdul Kalam speech http://www.youtube.com/watch?v=k-O24qidjj0&feature=related --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
