Indian Stocks Narrow Weekly Loss as Fed Rate-Hike Bets Decline

  • Automakers, consumers among top performers on benchmark gauges
  • Fed rate-hike concern eases on weak factory, retail sales data

Indian equities climbed the most in 10 days, led by automakers, as Asian stocks ended a six-day run of losses after investor expectations for an U.S. interest-rate increase eased and foreigners turned buyers of local shares for the first time in four days.

The gains helped the S&P BSE Sensex and the NSE Nifty 50 Index pare this week’s loss, the first in three weeks. Reports Thursday showed U.S. factory output fell more than forecast, while retail sales unexpectedly slid, sending the odds for a rate increase from the Federal Reserve next week to below 20 percent. The chance of an increase in borrowing costs this year has slipped below 50 percent for the first time in a month.

Nifty 50+0.4%8,779.85
S&P BSE India Auto+0.6%22,419.43
S&P BSE Technology+1.2%10,326.42

“Data shows that the U.S. economy is still weak and a rate hike can happen only later,” said C.A. Rudramurthy B.V., head of research at Vachana Investments Pvt. in Bengaluru. “There are no negatives for the Indian markets right now, except the recent uncertainty about the Fed hike. We expect the liquidity-driven rally to continue.”

Foreigners bought $52 million of shares Thursday after pulling $210 million in the previous three sessions as demand for risk assets cooled amid concern central banks are reluctant to boost stimulus. Foreigners have bought $6.2 billion of Indian equities this year, the most in Asia after Taiwan and South Korea, data compiled by Bloomberg show.

  • Bajaj Auto Ltd. and Hero MotoCorp Ltd. were among the best performers on the Sensex, while Maruti Suzuki India Ltd. rose for a third day to a record.
  • Infosys Ltd. jumped to a one-month high, ending two days of losses. India’s second-biggest software exporter said it will consider payment of an interim dividend on Oct. 14 when it announces September-quarter earnings.
  • Reliance Industries Ltd., the owner of the world’s largest refining complex, climbed to its highest price this year.
  • Nava Bharat Ventures Ltd. jumped the most in three months after Reliance Mutual Fund bought 3.97 million shares.
  • Indian Oil Corp. rose 2 percent after raising retail gasoline prices. Bharat Petroleum Corp. added 1.7 percent and Hindustan Petroleum gained the first time in five days.
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