Indian Stocks Rise for Second Day; State Bank, TCS Lead Advance
Indian (SENSEX) stocks gained for the second day, led by shares of lenders and software exporters.
The S&P BSE Sensex rose 0.2 percent to 19,485.55 at 9:23 a.m. in Mumbai. State Bank of India and ICICI Bank Ltd., the nation’s biggest lenders, advanced at least 0.7 percent. Tata Consultancy Services Ltd. (TCS), India’s largest software exporter, climbed 0.9 percent.
The rupee climbed for the second day after regulators took measures to rein in speculation in the derivatives market. The currency slid to an unprecedented 61.2125 per dollar on July 8 on concern the U.S. will cut stimulus that spurred inflows to emerging markets. Minutes of the Federal Reserve’s June meeting are due today.
The Sensex has dropped 2.9 percent since May 22, when Fed Chairman Ben Bernanke said the central bank will slow stimulus if the U.S. economy shows sustainable improvement. The measure trades at 13.1 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s 9.6 times.
Foreign funds sold a net $1.76 billion of Indian shares in June, the highest since August 2011, according to data from regulators. They sold a net $39 million of shares on June 8, the data show.
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