Shares of Indian outsourcing companies moved upward Monday on a report of robust growth in the Indian economy ahead of the government's announcement of next year's national budget.
shot up 4.5%, or $3.15, to $73.31. Shares of
Satyam Computer Services
spiked 3.2%, up $1.31 to $41.75.
rose 2.46%, or 34 cents to $14.17.
also moved up 1.9%, or $1.08, to $58.50 in recent trading.
A report from India's Minister of Finance projects the Indian economy will grow 8.1% in the fiscal year ending in March, after growing 8.5% and 7.5 % in the previous two years.
"The growth trend for the last three years appears to indicate the beginning of a new phase of cyclical upswing in the economy from 2003-04," according to the Economic Survey for 2005-06 presented by Indian Finance Minister P. Chidambaram. "Industry and services have continued to expand steadily. These sectors have acted as the twin engines propelling overall growth of the economy."
However, Chidambaram warned that the country's growth is tied to the development of infrastructure like power, roads, ports and airports, and more investment is needed in these areas.
Additionally, "policies and institutions need to be geared up to meet the specific requirements of the infrastructure sectors in India. A well-defined regulatory architecture has to be in place, to increase the comfort level of the different players in the market."