Indian Stocks Advance Most in a Month on Flows; Bharti Jumps
Indian (SENSEX) stocks rallied the most in a month, led by healthcare and industrial companies, as overseas investors added to their holdings of domestic shares for a 27th straight day.
The BSE India Sensitive Index, or Sensex, rose 0.9 percent to 19,421.04, the most since Nov. 30, according to preliminary closing prices in Mumbai. Sun Pharmaceutical Industries Ltd. (SUNP) increased to a one-week high. Bharti Airtel Ltd. (BHARTI), the largest cell-phone operator, jumped to a two-week high. Larsen & Toubro Ltd., the biggest engineering company, gained for the first time in five days.
The Sensex has risen 26 percent this year, headed for its biggest annual jump since 2009, as government steps to open the economy to foreign investment lured offshore funds. Overseas funds were net buyers of domestic stocks for a 27th day on Dec. 21, the longest stretch of net purchases since a record 41-day streak through Oct. 27, 2010, data compiled by Bloomberg show.
“If you want to look at the market in India, 50 percent is determined by what’s happening globally due to cross-country flows,” Sanjay Dutt, a director at Quantum Securities Ltd. in New Delhi, told Bloomberg India TV today. “The global picture is much more optimistic than what we expected it to be, even in the very short term.”
The MSCI Asia Pacific Index climbed 13 percent this year as of yesterday as U.S. and Chinese economies showed signs of recovery and central banks around the world took action to shore up growth. The Asian equities benchmark is trading less than 1 percent from its highest close for the year.
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