India Stocks Rebound From Five-Week Low as Decline Seen OverdoneBy and
Indian stocks advanced as some investors deemed the recent decline in the benchmark gauge to a five-week low to be excessive.
The S&P BSE Sensex climbed 1.6 percent, the most in more than two weeks, as shares of metals and consumer goods companies rose. It had fallen 0.9 percent on Monday to the lowest level since Nov. 21, after Prime Minister Narendra Modi hinted at raising taxes on income earned from share trading.
“The market looked a bit oversold and investors used the opportunity to value-pick stocks,” said Jitendra Panda, chief executive officer at Peerless Securities Ltd., said by phone from Kolkata. “But we can’t say that the worst is behind us. Market will remain volatile till we get more clarity on foreign investors’ plan for the emerging-markets. ”
Overseas investors have sold more than $875 million of local stocks this month, after a $2.6 billion net outflow in November.