India's Stocks Cap Fourth Day of Record Rally on Yellen Comments

  • S&P BSE Sensex advances to record in five of past six sessions
  • India ‘can’t be an exception’ to global rally: Maybank’s Shah

BlackRock's Rosenberg Says Yellen Didn't Surprise Anyone

Indian shares advanced as a rally that started in the U.S. extended to Asia, after Janet Yellen stressed that the Federal Reserve’s plan to tighten monetary policy will be gradual.

Key indexes closed at all-time highs for a fourth straight day.

The S&P BSE Sensex Index rose 0.7 percent to 32,037.38 at the 3:30 p.m. close in Mumbai, its fifth record high in six trading sessions. The benchmark gauge was trading at 19.6 times analyst estimates for the current financial year, near its highest valuation in 7 years. The NSE Nifty 50 Index climbed 0.8 percent to a record 9,891.70.

“All I can say is: long live liquidity,” said Jigar Shah, chief executive officer and head of research at Maybank Kim Eng Securities India Pvt. in Mumbai. Gains in U.S. equities after the Fed chair’s comments extended to regional markets and “India, that is already in a sweet spot, can’t be an exception to that,” he said.

Read more about global stocks rally after Yellen comments

Twelve of the 13 sector gauges compiled by BSE Ltd. rose, led by the S&P BSE Fast Moving Consumer Goods Index’s 1.6 percent rally to an all-time high. The S&P BSE MidCap and S&P BSE SmallCap indexes also climbed at least 0.4 percent to record closing levels.

The key Indian indexes have surged more than 20 percent so far this year, the best among Asian rivals, boosted by a more than $14 billion of purchases by foreign and domestic funds, according to the latest data compiled by Bloomberg.

“Foreigners are overweight India and domestic funds are also awash with money,” Maybank Kim Eng’s Shah said. “Investors will have to live with slightly higher levels at this point,” he said, and advises buying shares of car and auto-component makers, consumer companies, renewables and private lenders.

Summary

  • Housing & Urban Development Corp. jumps 8.5% to record; stock will be added to S&P BSE 500 Index on July 19
  • ITC Ltd. climbs 3%, steepest on Sensex; NOTE: ITC Is High Conviction Buy Amid Move to Uniform Pricing: CLSA
  • Sintex Industries Ltd. surges 16%, extending 2-day gain to 31%; Morgan Stanley bought 3.57m shares Wednesday
    Before it's here, it's on the Bloomberg Terminal.
    LEARN MORE