India's Sensex Rises to Record on Strong Company Earningsby and
Seven of nine Nifty-listed companies beat earnings estimate
Market has broken away from shackles of cash ban: Peerless
India’s benchmark indexes climbed to record levels on strong corporate earnings and gains in Asian markets.
The S&P BSE Sensex index rose 0.6 percent to close above 30,000 for the first time, while its peer, the NSE Nifty 50 Index, advanced 0.5 percent. Seven out of the nine Nifty-listed companies have either met or exceeded their earnings expectations for the January-March quarter, data compiled by Bloomberg shows.
“Strong company results show that the market has broken away from the shackles of demonetization,” Jitendra Panda, managing director at Peerless Securities Ltd. in Kolkata said by phone. “This milestone for the Sensex was long-awaited and with companies displaying momentum in the numbers, we expect better days ahead.”
The Sensex traded at 17.5 times estimated 12-month earnings, the most since November 2010. Seven months of net purchases by local funds have boosted the valuations of Indian stocks to their highest level in more than six years. The India VIX Index, a gauge of expected stock-price swings, rose 1.5 percent, rebounding from a record low.
Out of the 13 sector indices compiled by BSE Ltd., a gauge of fast-moving consumer goods surged the most, rising to its highest level since at least 2005. ITC Ltd. was the top performer on the Sensex, rising to a record high.
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