India’s benchmark stock index advanced to a 30-month high, led by real estate developers and automakers, amid expectations that rising incomes and the nation’s economic growth will boost profitability.
India’s automakers group may reduce its annual sales forecast at a review next month after passenger car sales growth slowed in May as gasoline prices rose to a record and borrowing costs remained high.
Indian stocks ended five days of gains and the rupee weakened as Standard & Poor’s warned the country could lose its investment-grade rating due to slowing growth and political roadblocks to economic policy-making. Bonds gained.
Automobile manufacturers in India such as Maruti Suzuki Ltd. and Mahindra & Mahindra Ltd. are estimated to invest $30 billion over the next four years to meet rising demand in the world’s second-fastest growing economy, the Economic Times newspaper reported citing Vishnu Mathur, director-general at the industry lobby group Society of Indian Automobile Manufacturers.