Mumbai: Indian stocks rallied to a six-week high, led by software makers after Infosys Ltd.'s earnings rose and its sales forecast in dollar terms beat analyst estimates. The S&P BSE Sensex soared 1.4 per cent to 19,958.47 at the close in Mumbai. Infosys, the second-largest software exporter, climbed the most in six months. Rivals Tata Consultancy Services and Wipro jumped about three per cent each. Sun Pharmaceutical Industries climbed to a record.
The Sensex climbed 2.4 per cent this week after Federal Reserve Chairman Ben S. Bernanke said the US economy will continue to need stimulus.
"Infosys earnings will prompt more buying in the software sector as it has improved the outlook" for the industry, K.K. Mital, a portfolio manager at Globe Capital Market, said by telephone from New Delhi. "The Fed's comments have eased concerns of withdrawals. Global funds will resume buying local shares and the rupee's depreciating trend will be checked." Tata Consultancy Services added 2.9 per cent to Rs1,609.85. Wipro gained 3.2 per cent to Rs375.6. The S&P BSE Infotech Index surged 6.5 per cent to its highest since April 3.
Tata Motors rose 2.7 per cent to Rs292.5. Drugmaker Dr Reddy's Laboratories climbed three per cent to Rs2,349.45. Reliance Industries rose 2.3 per cent to Rs889.95.