Sensex Climbs to 20-Month High After U.S. Budget Progress

Sensex Climbs to 20-Month High After U.S. Budget Progress
By Shikhar Balwani - Jan 1, 2013 6:14 PM GMT+0800

Indian (SENSEX) stocks rose after completing the best year since 2009. Industrials and metal producers paced gains as the U.S. Senate passed a budget deal seeking to undo tax increases that took effect today.
The BSE India Sensitive Index, or Sensex, advanced 0.8 percent to 19,581.08, according to preliminary closing prices at 3:30 p.m. in Mumbai, its highest close since April 25, 2011. Aluminum producer Hindalco Industries Ltd. (HNDL) jumped 2.7 percent, leading metal stocks higher after prices climbed in London. Bharat Heavy Electricals Ltd. (BHEL) increased 2 percent for a third day gains.
The legislation, passed this morning, would make permanent the tax cuts for most U.S. households that expired at midnight, continue expanded unemployment benefits and delay automatic spending cuts for two months. The Sensex climbed 26 percent in 2012, the most since an 81 percent surge in 2009, as the Indian government took steps to open the economy to foreign investment and local stocks attracted Asia’s biggest overseas inflows.
Other markets in the region are closed today.
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