BackSensex climbs for a third day as Coal India, ITC, Maruti advance
Bhel was the worst performer on Sensex after Wednesday reporting sales that missed estimates
Premium
Mumbai: Indian stocks rose, led by materials producers and consumer companies, as the benchmark index gained for a third day amid increases in emerging-market equities.
Coal India Ltd jumped the most in four months. Hindustan Unilever Ltd (HUL) had the biggest gain in five months and cigarette maker ITC Ltd, which has the highest weighting on the S&P BSE Sensex, posted the steepest climb in a month. Car maker Maruti Suzuki India Ltd climbed the most in a week. Tata Power Co. Ltd, India’s largest non-state generator, rose to a two-week high.
The Sensex added 0.3%, or 49.71 points, to 20,310.74 at the close, after changing direction six times. The MSCI Emerging Markets Index rose 0.7% after Wednesday closing at a five-month low amid a slowdown in China’s economy and reduced stimulus in the US, where January employment data are due Friday.
“We’re back to times when every morning we look at what has happened across the Atlantic the previous night to decide our trading strategy," P. Phani Sekhar, a fund manager at Angel Stock Broking Ltd, told Bloomberg TV India on Thursday.
Coal India jumped 4.59% to ₹ 266.80, the most since 8 January. HUL advanced 2.9% to ₹ 586.55, its highest level since 29 November. ITC rose the most since 10 January.
Maruti Suzuki rose 2.05% to ₹ 1,639.60, while Mahindra and Mahindra Ltd, India’s largest maker of sport-utility vehicles and tractors, climbed 2.43% to ₹ 897. Tata Power increased 3.22% to ₹ 75.25.
Power-equipment maker Bharat Heavy Electricals Ltd (Bhel) was the worst performer on Sensex after Wednesday reporting sales that missed estimates. The stock has lost 9.3% over five days through Thursday, the most since 16 December.
Earnings scorecard
Seventy nine percent of the 18 Sensex members that posted earnings for the quarter ended 31 December so far have exceeded or matched analyst estimates, data compiled by Bloomberg show. That compares with 70% in the previous quarter and 47% in the quarter ended 30 June.
The gauge has slid 5% from its 23 January record amid a sell-off in emerging-market equities. Reserve Bank of India (RBI) governor Raghuram Rajan unexpectedly raised interest rates on 28 January to cool inflation and defend the currency.
The rupee rose the most in more than a week on speculation a mobile-phone spectrum auction will draw overseas capital. The government got bids valued at ₹ 44,610 crore on the first day of the auction that began 3 February.
“Once the currency remains in place, one can focus on stock-picking, which is what has happened in India," Rahul Chadha, co-chief investment officer with Mirae Asset Global Investments Hong Kong Ltd, which has $60 billion in assets, said on Bloomberg TV India on Thursday. “The key call in India is when does the domestic economy pick up."
Foreign investors bought a net $12.9 million of stocks Wednesday, ending four days of outflows and paring this year’s outflows to $186 million, data compiled by Bloomberg show. Bloomberg
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
