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Year’s First Trillion-Dollar Bull Market Is Nearing in India

  • Sensex up 16% from February low as global funds pile in
  • Earnings, rain and GDP optimism overshadow valuation concerns
Indian labourers hang a banner bearing the image of Indian Prime Minister Narendra Modi ahead of the forthcoming Parivartan Rally in Allahabad on June 9. Modi has opened sectors such as railways and defense, helping draw record foreign direct investment in 2015, narrowed the current-account gap by curbing gold imports, quickened infrastructure building and limited the budget deficit to a nine-year low.

Indian labourers hang a banner bearing the image of Indian Prime Minister Narendra Modi ahead of the forthcoming Parivartan Rally in Allahabad on June 9. Modi has opened sectors such as railways and defense, helping draw record foreign direct investment in 2015, narrowed the current-account gap by curbing gold imports, quickened infrastructure building and limited the budget deficit to a nine-year low.

Photographer: Sanjay Kanojia/AFP via Getty Images
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Faith in India’s economy and its weather is giving overseas investors the confidence to snap up equities at the quickest pace in more than a year.

Traders are shrugging off the most expensive stock valuations since 2011, sending Indian shares back toward a bull market amid forecasts for the strongest monsoon in two decades and data showing the nation growing faster than all other major economies. Inflows may continue as the benefits of Prime Minister Narendra Modi’s policies emerge in corporate earnings reports, investors including Mark Mobius and BNP Paribas SA said.