Indian Stocks Advance for Fifth Day on Earnings, Rupee Strength
Indian stocks gained for the fifth day after better-than-expected earnings by companies including Cipla Ltd. and a recovery in the rupee from a seven-week low boosted investor sentiment.
The BSE India Sensitive Index (SENSEX), or Sensex, rose 0.3 percent to 18,823.58, according to preliminary closing prices, after changing directions at least 20 times. Drugmaker Cipla jumped 4.2 percent to a record. The rupee rose 0.4 percent to 54.3950 per dollar, rebounding from its weakest level since Sept. 14.
The Sensex has increased 22 percent this year, driven by overseas fund purchases and government policy reforms announced since mid-September to revive economic growth. Foreigners have bought a net $18.3 billion of local shares this year, the most among 10 Asian markets tracked by Bloomberg, excluding China.
Out of the 21 Sensex companies that have reported earnings for the quarter ended Sept. 30, just four, or 19 percent, have trailed analysts’ estimates. That compares with 40 percent of the index companies missing forecasts in the June quarter, data compiled by Bloomberg show.
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