Most Indian Stocks Advance After Biggest Two-Day Slump in Month
Most Indian (SENSEX) stocks climbed following the benchmark index’s biggest two-day drop in a month.
Engineering company Larsen & Toubro Ltd. (LT) rose, helping a gauge of 20 capital-goods producers to its first gain in three days. Maruti Suzuki India Ltd. (MSIL) added 1.8 percent, sending the S&P BSE India Auto Index towards its biggest advance since Sept. 19. State Bank of India retreated for the third day after Moody’s Investors Service cut the lender’s credit rating.
Two stocks climbed for every one that fell on the S&P BSE Sensex, which rose 0.5 percent to 20,001.90 as of 10:04 a.m. in Mumbai. Volume was 28 percent below the 30-day average for this time of day. The 30-stock gauge slumped 3.6 percent in the past two days after the Reserve Bank of India raised the repurchase rate last week for the first time in two years. The index’s 30-day volatility, a measure of price swings, climbed to the highest level since August 2009 yesterday.
Overseas investors bought a net $215 million of domestic shares on Sept. 20, data from the regulator show. That took this year’s net inflow to $13.4 billion, the second-highest among 10 Asian markets tracked by Bloomberg. They pulled $3.7 billion from local equities in the three months to Aug. 31 as capital fled emerging markets amid speculation the U.S. Federal Reserve would curtail economic stimulus.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at email@example.com