Indian equities scale two-year peak on BSE

MUMBAI, India - Indian stocks rose for a fifth day, driving the benchmark index to its highest level in two years, amid optimism that a global economic recovery will spur investment in the nation's equities.

Mahindra & Mahindra Ltd, a carmaker, and DLF Ltd, a real estate developer, gained. Foreign funds bought more shares than they sold for an 18th day on March 26, sending the rupee to its strongest per dollar in 18 months. US consumer spending rose for a fifth month and European confidence in the global economy improved, reports showed.

"As long as the recovery in the US and Greece remains stable, the fund inflow momentum will remain strong," said Rajen Shah, chief investment officer at Angel Broking Ltd in Mumbai. "India's story is positive, company earnings will be excellent and we expect the Sensex to touch 19500 by December."