Indian (SENSEX) stocks advanced, with the benchmark index gaining for the first time in three days, as capital goods companies and banks advanced.
ICICI Bank Ltd. (ICICIBC) increased 1 percent, helping the S&P BSE Bankex index rebound from a 2.5 percent decline yesterday. Larsen & Toubro Ltd. (LT) advanced 1.6 percent, leading a rally in the BSE Capital Goods Index.
The S&P BSE Sensex rose 0.4 percent to 20,303.51 at 10:02 a.m. in Mumbai. The gauge slumped the most since Sept. 3 yesterday as the rupee weakened after the U.S. Federal Reserve signaled monetary stimulus may be reduced in coming months. The Fed’s $85 billion of monthly bond-buying has helped fuel inflows into Indian stocks this year. International investors have bought a net $17.2 billion of Indian shares this year, the highest after Japan among 10 Asian markets tracked by Bloomberg.
Indian stocks will lead the next cycle of gains in equities, along with South Korea and China, according to a Credit Suisse Group Inc. report today. Elections next year “could act as a catalyst to boost nominal gross domestic product growth,” the report said.
The CNX Nifty (NIFTY) Index climbed 0.4 percent to 6,021.95.
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