India Sensex Caps Weekly Gain as Asian Stocks Rise on China PMI

Updated on
  • Sun Pharma, Infosys, TCS gain; Maruti, Bharat Heavy decline
  • Indian markets, banks closed tomorrow for a public holiday

Indian stocks advanced, with the benchmark gauge capping a weekly gain, tracking an increase in Asian equities as signs of stabilization in China’s manufacturing activity lifted demand for riskier assets.

Sun Pharmaceutical Industries Ltd., the nation’s most valuable drugmaker, climbed for a second day. Lupin Ltd. jumped to a record. Tata Consultancy Services Ltd. and Infosys Ltd., the top software exporters, rose to a six-week high. Larsen & Toubro Ltd., the most valuable engineering firm, rebounded for a third day after falling to a one-year low.

The S&P BSE Sensex gained 0.3 percent to 26,220.95 in Mumbai. The gauge has risen 1.4 percent this week after the central bank cut its benchmark rate on Tuesday by more than economists’ forecast. China’s factory gauges showed slower-than-estimated contraction, easing concerns about a slowdown that erased about $10 trillion from global stock values in the quarter ended September.

“There’s some sanity returning to the global markets," Aneesh Srivastava, who manages $700 million as chief investment officer at IDBI Federal Life Insurance Co., said by phone. “Global sentiments drove the emerging-markets selloff, which impacted India despite the nation having a better growth outlook. Those headwinds are behind us.” Srivastava said he favors lenders, infrastructure and engineering companies.

Lupin surged 3.7 percent, taking this year’s gains to 48 percent , the most on the Sensex. Sun Pharmaceutical gained 2.6 percent. Infosys added 1 percent, extending this year’s gains to 19 percent. TCS increased 2.2 percent to its highest level since Aug. 21. Larsen rose 1.6 percent.

HCL Technologies Ltd., the fourth-largest Indian software exporter, plunged 13 percent, the most since January 2009, after it said currency and certain client issues are likely to hurt revenue growth in the quarter through September. HCL is considering setting aside as much as $20 million for the quarter “as a matter of prudence” because of differences with a client over the objectives of a contract, the company said in an exchange filing.

Maruti Suzuki India Ltd. tumbled 2.3 percent after September sales grew at the slowest pace since June. Bharat Heavy Electricals Ltd. dropped 3 percent, the worst performer on the gauge on Thursday.

International investors sold a net $168 million of Indian stocks on Sept. 29, paring this year’s inflow to $3.6 billion, still the largest among eight Asian markets tracked by Bloomberg.

The Sensex has fallen 4.7 percent this year and trades at 15 times projected 12-month earnings, versus the MSCI Emerging Markets Index’s multiple of 10.7.

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