- Bets of a rate increase by Fed this week pared down to 20%
- Foreigners buy most Indian equities this quarter since 2015
Most Indian stocks climbed, led by industrials and utilities, as emerging-market equities gained on optimism the Federal Reserve will delay raising borrowing costs.
Three stocks gained for each that fell on the S&P BSE 100 Index at the close in Mumbai. Volumes on the NSE Nifty Index of the country’s 50 biggest companies were 32 percent below the 30-day average. The MSCI Emerging-Market Index headed for the biggest gain since Sept. 9.
|Nifty 50||+0.3%||Sept. 9|
|S&P BSE MidCap||+0.6%||Sept. 9|
The developing-nation stocks gauge climbed after tumbling 2.6 percent last week as futures showed an 80 percent probability the Fed will refrain from raising rates this week. There’s just a 20 percent chance the authority will increase borrowing costs at its two-day meeting starting Tuesday, according to data compiled by Bloomberg based on futures. The Bank of Japan is due to review its policy on Wednesday.
Low interest rates in the U.S. and other developed nations have lifted demand for riskier emerging-market securities. Global funds have bought $3.4 billion of Indian stocks in the current quarter, the most since the three months ended March 2015, as the passage of key economic reforms and improvement in public finances bolstered sentiment. The Sensex and the Nifty gauges have risen in seven of 10 sessions in September.
“Our domestic macros are improving and there’s ample liquidity supporting the market right now,” Kaushik Dani, a fund manager at Karvy Stock Broking Ltd. in Mumbai, said by phone. “In the near term, investors are focused on the Fed and BOJ meetings, and any major move will happen after that.”
- Reliance Industries Ltd., owner of the world’s largest refining complex, climbed to its highest level since June 2014.
- Tata Consultancy Services Ltd. posted its biggest jump since Aug. 1 after tumbling 6.5 percent last week, its fourth straight week of declines.
- NTPC Ltd. and Power Grid Corp. of India, the nation’s largest state-owned utilities, were among the best performers on the Sensex.
- Ceat Ltd. surged 6 percent, pacing a rally among tiremakers, as investors bet the drop in natural-rubber costs will aid profitability. MRF Ltd. soared to a one-year high, while Apollo Tyres Ltd. climbed to a 19-month high. Domestic rubber prices have decreased by 25,000 rupees ($373) a ton from a high of 144,000 rupees a ton a few months ago, Equinomics Research & Advisory Pvt. wrote in a report on Monday.
- ICICI Bank Ltd. rose for the first time in three days. The lender will sell up to 181.34 million shares in the first-time share sale of ICICI Prudential Life Insurance. The IPO, the nation’s biggest in six years, opened on Monday.
- Sharp India Ltd. soared by the daily limit of 20 percent after the company said it is considering forming a panel of independent directors to give a recommendation on the mandatory open offer made by Sharp Corp., which owns 75 percent of the local unit.
- United Breweries Holdings Ltd. surged by the 20 percent limit for a second day. The company owns about 11 percent of United Breweries Ltd., whose shares rose the most in 14 months after Heineken International bought 1.85 million shares of the company.