Sensex advances to 2-week high, paced by bank shares

Indian stocks climbed before the release of monthly inflation and industrial output data as optimism grew over the progress of economic Bills in Parliament.

ICICI Bank Ltd, State Bank of India, and HDFC Bank Ltd rose at least one per cent each. Dr Reddy’s Laboratories Ltd was the top gainer on the S&P BSE Sensex. Asian Paints Ltd jumped to a record after its group sales beat analyst estimates Wednesday. Tata Consultancy Services Ltd. added 1.9 per cent.

The Sensex index increased 0.8 per cent to the highest since April 27. Industrial production may have expanded 2.5 per cent from a year earlier in March, compared with a two per cent gain in February, a Bloomberg survey of economists showed before government data due Thursday. Parliament passed a Bill on Wednesday to overhaul archaic insolvency laws, taking prime minister Narendra Modi a step closer to fulfilling his pledge to make it easier to do business in the world’s fastest-growing major economy.

“Quarterly earnings are signalling an uptick in industrial demand,” Jitendra Panda, chief executive at Peerless Securities Ltd, said by phone from Kolkata. “Bank stocks are up after the bankruptcy legislation was passed by Parliament. Investors are finding value in beaten down drugmakers and utilities.”

The Bill’s passage gives Modi a political victory after opponents blocked several other pieces of legislation, including a national sales tax. It’s also one of the biggest steps in India’s battle CEO, Portfolio Management Services, Prabhudas Lilladher India Strategist, Mizuho Bank to clean up $117 billion of stressed assets. The inability to shut loss-making companies and collect dues had locked up funds at banks and damped lending and investment.