India's Nifty Little Changed After Briefly Hitting 10,000 MarkBy
India’s NSE Nifty 50 Index closed little changed after briefly climbing above 10,000 for the first time.
The broad index fell less than 0.1 percent to 9964.55 in Mumbai. The S&P BSE Sensex Index also barely moved. While company earnings so far have been better than expected, valuation concerns are hindering further stock gains, following multiple records for both benchmarks.
Seven of the 13 indexes compiled by BSE Ltd. advanced, with a gauge of banks rising to its highest level since January 2002. The rally that pushed India’s stock market to multiple records is showing signs of fatigue. The 50-day average of stock deliveries, or number of shares deposited into buyers’ accounts as a proportion of the total traded, has fallen to the lowest level since September, an indication the momentum may wane.
“I think the market is gasping for oxygen in this rarefied atmosphere,” said Shankar Char, senior vice president at Antique Stock Broking Ltd. in Mumbai. “If the mid caps don’t rally soon, there could be a case for calling a top in the next few days,” he said.
The corporate earnings season for the April-June period has started on an encouraging note, with the combined net income of a sample of 119 companies showing stronger growth than a year earlier, Equinomics Research & Advisory Pvt. said in a note on Tuesday.
“Early earnings numbers are better than expected, with an uptick in consumption, and concerns about the impact of goods and services tax appear to have been exaggerated,” said Sunil Sharma, chief investment officer at Sanctum Wealth Management Pvt. “Financials continue to lead and the earnings for private banks and non-bank finance companies are reassuring investors that the prospects are good for a pickup in growth later in the year.”
- Idea Cellular +6.4%, CCI said to clear merger deal with Vodafone
- Bharti Infratel +1.7%, to report earnings results today
- United Spirits -1.7%, cut to neutral from buy at Goldman Sachs