Indian shares rose 1.78 percent Friday as infrastructure stocks rose on hopes that the government will announce an economic stimulus package in its interim budget next week, dealers said. The benchmark 30-share Sensex index rose 168.91 points to 9,634.74.
Sentiment improved after state-run Indian Railways projected gross revenues of 931 billion rupees (19.14 billion dollars) for the coming fiscal year, up 11 percent from the previous year. India's railway minister Lalu Prasad Yadav said the railways would show a surplus of 188 billion rupees as he announced new trains and fare cuts on Friday.
"The railway budget sent strong signals that the interim union budget to be announced next week will have incentives for sectors feeling the pain," said Alex Mathew, head of research with brokerage Geojit Financial Services. In Friday's trade, gainers led losers 1,484 to 947 on turnover of 30.88 billion rupees (634 million dollars).
Reliance Industries rose 39.25 rupees or 2.9 percent to 1,390.95 and DLF rose 4.35 rupees or 2.78 percent to 160.6 on hopes of a stimulus package next week to boost growth. ICICI Bank rose 13.05 rupees or 3.1 percent to 434.3, on expectations that India's central bank may cut interest rates next week. Tata Steel rose 8.7 rupees or 4.69 percent to 194.15 on firm global steel prices and optimism about improved sales in February over the previous month.
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