India’s benchmark stock index ended four days of losses as technology companies and industrials advanced amid a recovery in developing-nation equities.
Infosys Ltd., the second-largest software maker, climbed for the first time in six days. Vedanta Ltd., the top copper producer, had the steepest gain in about three weeks after its profit beat estimates. Larsen & Toubro Ltd., the nation’s most valuable engineering company, and Bharat Heavy Electricals Ltd., the biggest power-equipment maker, rose at least 1.7 percent.
The S&P BSE Sensex added 0.4 percent to 27,563.43 at the close in Mumbai. The measure’s decline on Tuesday to the lowest level since June 19 reduced its valuation to a one-month low, providing “some comfort” to investors, Kaushik Dani, a fund manager at Karvy Stock Broking Ltd. in Mumbai, said by phone.
“Things have stabilized in China, plus a decline in oil and commodity prices is structurally positive for India,” he said. An advance in emerging-market equities from a two-year low is also supporting sentiment, he said.
Oil is heading for the biggest monthly decline this year as resilient U.S. output, rising OPEC supply and threats to Chinese demand keep a global glut in place. While the Bloomberg Commodity Index rose Tuesday for the first time in five days, it remains near a 13-year low.
The MSCI Emerging Markets Index rose 0.7 percent, halting a five-day drop, as energy companies advanced and investors speculated on the timing of U.S. interest-rate increases. The Federal Reserve will release its policy statement on Wednesday in Washington after a two-day meeting that may give clues on when it will raise the near-zero rates that have helped fuel demand for riskier assets.
While economists see no chance rates will rise this week, they put the odds of a September boost at about 50 percent, a Bloomberg survey published July 22 showed.
Infosys increased 2.1 percent, the biggest gainer on the Sensex. Wipro Ltd., the third-biggest, increased 1.5 percent.
Tata Motors Ltd., owner of Jaguar Land Rover, rebounded from its lowest level since February 2014. Larsen & Toubro added 1.8 percent, while Bharat Heavy increased 1.7 percent.
Vedanta posted first-quarter profit surged 130 percent to 8.66 billion rupees ($136 million), beating the 5.44 billion rupees estimated by analysts. Earnings include a foreign-currency gain of 2.55 billion rupees versus 1.41 billion rupees a year earlier, the company said in a statement. The stock gained 1.4 percent.
Nine of the 13 Sensex companies that have posted earnings for the June quarter have matched or beaten estimates, compared with 40 percent in the March quarter.
Global investors sold a net $204.6 million of local stocks on Tuesday, July 28, the largest daily outflow since May 6.
The Sensex has risen 0.2 percent this year and trades at 15.4 times projected 12-month profits. The MSCI Emerging Markets Index is valued at a multiple of 11.2.