Indian Stocks Extend Five-Day Rally as Power Utilities AdvanceSantanu Chakraborty
India stocks rose for a sixth day, sending the benchmark index to a three-week high, as companies tied to the economy climbed on optimism the government will accelerate policy changes to boost growth.
Housing Development Finance Corp., the largest mortgage lender, was the top performer on the S&P BSE Sensex. NTPC Ltd. and Tata Power Co. rose at least 1.5 percent, helping a gauge of utilities to a sixth day of gains, the longest stretch since November. Tata Motors Ltd. climbed for a fourth day.
The S&P BSE Sensex increased 0.6 percent at 29,320.26, the highest close since Jan. 29. The measure capped its longest run of gains in three weeks on expectations Prime Minister Narendra Modi’s government will announce further growth-boosting steps in its first full-year budget this month. Asian and European rose amid speculation Greece and its creditors may be moving toward a compromise.
“Cyclicals are rising on anticipation that Modi will take steps to speed up investments for infrastructure,” Supreeth Shankarghal, a director at hedge fund QF Assets, said by phone from Bengaluru. “Global markets are up on the hope that Greek banks will get emergency funding despite the breakdown in debt talks between Athens and its creditors.”
Housing Development jumped 3.2 percent in a fourth day of gains, the longest run this year. Tata Motors rose 1.8 percent.
NTPC climbed to a three-month high, while Tata Power rose 2.6 percent. ITC Ltd., the soaps-to-hotels conglomerate, jumped to a two-month high. The stock rallied for a third day, sending an index of consumer shares to a record.
The S&P BSE Mid-Cap Index of 279 medium-sized companies added 0.8 percent to a record, while a measure of 488 small companies jumped 1 percent.
Suzlon Energy Ltd. capped a record two-day, 39 percent surge after billionaire Dilip Shanghvi and his family agreed to buy a 23 percent stake in the wind-turbine maker on Saturday.
Pipavav Defence & Offshore Engineering Ltd. increased 12 percent, extending Monday’s 5.9 percent climb, after India’s cabinet panel approved a 454-billion rupee navy project. The stock surged 28 percent last week on a report that Mahindra & Mahindra Ltd. will buy the company.
Multi Commodity Exchange Ltd. rose to the highest level in almost two years after the bourse on Tuesday reported a 6 percent increase in third-quarter profit to 230 million rupees.
The Sensex has gained 6.6 percent this year and trades at 16.5 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.8. The Indian gauge’s 50-day volatility index, a measure of price fluctuations, rose to the highest level since December 2013 on Friday.
“We have a big event in the form of budget and the market will be choppy in anticipation of that event,” Gaurang Shah, a vice president at Geojit BNP Paribas Financial Services Ltd. in Mumbai, said in an interview to Bloomberg TV India today. “We are advising clients, who are on the long side purely for the short term, to take some money off the table.”
International investors bought a net $61 million of local shares on Feb. 13, taking this year’s inflow to $2.49 billion, the second-highest after Taiwan among eight Asian markets tracked by Bloomberg.
Indian markets were closed yesterday for a public holiday.
amid speculation that Greece and its creditors may be moving toward a compromise.
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