Indian Stocks Rise Most in Two Weeks on Rupee as Deficit Narrows
Indian (SENSEX) stocks surged the most in two weeks after the rupee rebounded from a record low as the nation’s current-account deficit narrowed and amid speculation the U.S. central bank may hold back from reducing stimulus.
The S&P BSE Sensex rallied 1.1 percent to 18,747.70 at 9:29 a.m. in Mumbai. Reliance Industries Ltd. (RIL), owner of the world’s largest refining complex, soared 2 percent. HDFC Bank Ltd., (HDFCB) India’s most valuable lender, paced gains among its peers.
The nation’s current-account deficit narrowed more than estimated last quarter from a record, a moderation that may ease pressure on the rupee, official data showed today. The U.S. economy expanded at a revised 1.8 percent annualized rate from January through March, down from a prior estimate of 2.4 percent, stoking speculation the Federal Reserve may continue with its efforts to bolster growth.
Overseas investors are on course for the first monthly net sales of Indian stocks since May 2012. They pulled $221 million from domestic shares on June 25, an 11th day of net sales, the longest series of outflows since November 2011. Foreign funds have still purchased a net $13.6 billion this year, a record for the period, data compiled by Bloomberg show.
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