Sensex Climbs First Time This Year as Coal India, Cipla Rally

Indian stocks climbed for the first time this year as materials producers and drugmakers advanced.

Coal India Ltd. jumped the most in four months after the world’s biggest miner of the fuel said it will consider paying an interim dividend. Cipla Ltd. had the biggest increase since September and Sun Pharmaceutical Industries Ltd., the country’s most valuable drugmaker, climbed for the sixth day.

The S&P BSE Sensex added 0.2 percent to 20,729.38 at the close, ending a five-day losing streak. The gauge had retreated 2.3 percent since the start of the year through yesterday amid a slowdown in manufacturing output, the fastest consumer-price inflation in at least two years and economic growth that’s stayed below 5 percent for four straight quarters.

“The market will consolidate at the current level until the start of the earnings season and release of economic data in the next few days,” D.K. Aggarwal, New Delhi-based chairman of SMC Investments & Advisors Ltd., which manages $100 million in local equities, said by phone today.

Infosys Ltd., India’s second-biggest software services exporter, is scheduled to report December-quarter earnings Jan. 10, while the government releases industrial production data for November on the same day.

Coal India surged 4.9 percent, the most since Sept. 5. A special midyear dividend will help the government, which owns 90 percent of the company, meet its budget-deficit target.

Cipla rallied 3.4 percent, ending a four-day, 2.7 percent decline. Sun Pharmaceutical rose 1.1 percent to 600.90 rupees, its highest level since Nov. 19. Dr. Reddy’s Laboratories Ltd. rose 1.7 percent, extending last year’s 39 percent rally. The &P BSE India Healthcare index gained 1 percent to a record.

Infosys Earnings

Infosys may report profit of 27.5 billion rupees ($441 million) for the quarter ended Dec. 31, according to the median estimate of 21 analysts in a Bloomberg survey. That compares with 23.7 billion rupees in the same period a year earlier.

Industrial output may have expanded 1 percent in November, compared with a 1.8 percent contraction in October, according to the median estimate of 22 analysts in a Bloomberg survey. India publishes inflation reports next week, which separate surveys predict will show price pressures are easing.

Global investors sold a net $85.7 million of local shares on Jan. 7, the largest outflow since Sept. 3, data compiled by Bloomberg show. They invested $20 billion last year, the most in Asia after Japan, and $24.6 billion in 2012, the data show.

The Sensex is trading at 13.1 times projected 12-month earnings, compared with the five-year average of 14.4 times. The MSCI Emerging Markets Index is valued at 10.2 times.

The CNX Nifty Index increased 0.2 percent to 6,174.60. The India VIX was unchanged.

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