India’s Sensex Rallies to Record for Fourth Day on ECB Stimulus

Indian stocks advanced to a record for a fourth day, with the benchmark index completing its biggest weekly rally in eight months, as the European Central Bank expanded its stimulus program.

Tata Power Co. advanced the most on the S&P BSE Sensex, while Bharti Airtel Ltd., the largest mobile-phone operator, climbed to a two-month high. Tata Motors Ltd., owner of Jaguar Land Rover, climbed to an all-time high. Engineering company Larsen & Toubro Ltd. increased to its highest level since July. Sun Pharmaceutical Industries Ltd. advanced for a seventh day.

The Sensex rallied 0.9 percent to 29,278.84 at the close, taking the week’s increase to 4.1 percent, the most since June. Asian and European equities climbed after ECB President Mario Draghi announced an expanded stimulus plan and kept interest rates at record lows, boosting speculation capital flows to emerging-market assets will increase.

“Much of what we are seeing is on expectation of what central banks would be doing going forward,” Atif Latif, a director of trading at Guardian Stockbrokers in London, told Bloomberg TV India today. “Risk appetite is moving up and things are looking positive.”

Foreigners bought a net $346 million of local shares on Jan. 21, the most since Dec. 8, according to data compiled by Bloomberg. That took this year’s purchases to $782.5 million, the most among eight Asian markets tracked by Bloomberg.

Tata Power, the biggest generator outside state control, surged 6.7 percent, the most since May 19. Bharti soared 3.8 percent to its highest level since Dec. 2.

Housing Development Finance Corp., the biggest mortgage lender, added 0.8 percent to a record. Tata Motors jumped 3.9 percent. Larsen increased 2.9 percent. Sun Pharmaceutical rose to a record.

RBI, IMF

The Sensex has climbed 6.5 percent this month, the best performer in the world in dollar terms, after the central bank lowered its main interest rate for the first time in 20 months on Jan. 15, and the International Monetary Fund said this week that India will be the world’s fastest-growing major economy in the year ending March 2017.

The gauge’s 50-day historical volatility index rose to the highest since July. Its 14-day relative strength index, which tracks how rapidly prices rose or fell during the specified period, was at 72.5. Some investors see readings of more than 70 as a signal to sell.

The market is closed on Jan. 26 for a public holiday.

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