Indian stocks advanced, with the benchmark index paring a weekly loss, as metal producers and lenders advanced.
Tata Steel Ltd. (TATA) climbed to a two-week high. Lender Axis Bank Ltd. (AXSB), rose for the first time in three days. Tata Power Co. (TPWR), India’s biggest non-state generator, increased 1.6 percent before its earnings today.
The S&P BSE Sensex (SENSEX) added 0.5 percent 20,416.81 at 10:02 a.m. in Mumbai, paring its weekly decline to 0.4 percent. The MSCI Asia Pacific Index advanced today as U.S. jobless claims dropped for the first time in three weeks. Fifteen of the 19 Sensex companies, or 79 percent, that have posted earnings for the December quarter so far have beaten or matched analyst estimates, compared with 70 percent in the September quarter and 47 percent three months earlier.
Tata Power may report profit of 2 billion rupees ($32 million), according to the median estimate of 23 analysts in a Bloomberg survey. That compares with a 3.29 billion-rupee loss a year earlier. The stock gained for a third day
Foreign investors bought a net $12.9 million of stocks on Feb. 5, the first inflow in five days, paring this year’s net sales to $186 million, data compiled by Bloomberg show.
The Sensex has lost 3.5 percent this year and trades at 12.8 times projected 12-month profits, near the cheapest level since August. The gauge has dropped 5 percent from its Jan. 23 record amid a selloff in emerging-market equities and after Reserve Bank of India Governor Raghuram Rajan unexpectedly raised interest rates on Jan. 28 to cool inflation and defend the rupee. The MSCI Emerging Markets Index is valued at 9.1-times forward earnings.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at email@example.com