July 23 (Bloomberg) -- Indian stocks climbed for a seventh day, with the benchmark index advancing to a record, on better-than-estimated company earnings and higher foreign inflows.
Bank of Baroda jumped to a two-week high, sending the S&P BSE India Bankex higher, after the central bank allowed global investors to buy more shares of the lender. Infosys Ltd. led software exporters higher after Goldman Sachs Group Inc. raised its recommendation on the sector. Tiremaker MRF Ltd. rose 5.8 percent after reporting profit that exceeded estimates.
The S&P BSE Sensex increased 0.5 percent to 26,147.33, an all-time high. Foreigners have bought $11.9 billion of Indian equities this year, the most in Asia, on speculation that Prime Minister Narendra Modi’s government will spur economic growth from near a decade low. First-quarter profit at four of the six Sensex companies that have announced results so far have beaten analyst estimates, data compiled by Bloomberg show.
“You have the coincidence of an economic-cycle bottom and a liberal government coming in with a strong mandate,” Lalit Nambiar, a fund manager at UTI Asset Management Co., which has $13.2 billion in assets, said in an interview to Bloomberg TV India today. “The picture for the next two to three years is bullish. There’s consensus on that among local institutions and foreign funds.”
Bank of Baroda rallied 2.6 percent, extending this year’s gain to 32 percent. ICICI Bank Ltd. added 1.5 percent.
Infosys rallied 3.6 percent, while rival Tata Consultancy Services Ltd. rose to a record 2,586.15 rupees. First-quarter earnings at both software exporters surpassed estimates because of rising demand in the U.S. and Europe.
UBS AG lifted its price target for TCS to 2,700 rupees from 2,500 rupees, while Goldman Sachs raised the sector to overweight from marketweight in a note dated yesterday.
Yes Bank Ltd. slipped 1.7 percent after its first-quarter net income rose 10 percent, missing estimates. MRF jumped 5.8 percent to a one-month high after profit beat estimates.
JSW Energy Ltd. increased 1.3 percent after its group net income surged 52 percent to 3.25 billion rupees, matching analyst estimates.
The Sensex has increased 24 percent this year, the best performer among the world’s 10 biggest markets, and is valued at 15.9 times projected 12-month earnings. The MSCI Emerging Markets Index is trading at a multiple of 11.2. The MSCI gauge headed for an 18-month high today.
“The Indian market has been driven by improving risk appetite globally, as well as a bottoming out of growth, and not just the change in government,” Neelkanth Mishra and Ravi Shankar, analysts at Credit Suisse Group AG, wrote in a note dated yesterday.
The CNX Nifty Index on the National Stock Exchange of India Ltd. advanced 0.4 percent to 7,795.75.
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