Indian stocks advance to highest in a week

Indian stocks climbed, tracking a rebound in Asian equities, on optimism German lawmakers will approve the expansion of a bailout fund for Europe's debt- stricken nations, and as a top government official said the South Asian economy may "turn around soon." Infosys Ltd. rallied 3.3 per cent, pacing advances among software services exporters on speculation a decline in the rupee will make them more competitive. India is a "haven of relative safety," Kaushik Basu, chief economic adviser in the finance ministry, said yesterday. ITC Ltd., Asia's second-largest cigarette maker by market value, advanced 2.7 per cent. "We have seen a substantial sell-off and this is the time for investors to pick stocks," Gurunath Mudlapur, managing director at Atherstone Capital Markets Ltd. in Mumbai, said by phone. "Markets are tired of getting negative news." The BSE India Sensitive Index, or Sensex, jumped 252.05 points, or 1.5 per cent, to 16,698.07, its highest level since September 21. The measure's gain outweighed speculation the central bank may increase borrowing costs further after food inflation accelerated for the first time in four weeks.