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Business News/ Market / Stock-market-news/  Sensex caps third weekly gain as Greece vote awaited
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Sensex caps third weekly gain as Greece vote awaited

The BSE Sensex rose 0.53% and closed at 28,092.79 points, taking the week's gain to 1%

Housing Development Finance Corp. was the top gainer on the Sensex, while Hero MotoCorp climbed the most in five weeks. Photo: BloombergPremium
Housing Development Finance Corp. was the top gainer on the Sensex, while Hero MotoCorp climbed the most in five weeks. Photo: Bloomberg

Mumbai: Indian stocks rose, with the benchmark completing its third weekly advance, as investors awaited Greece’s referendum on the terms of a bailout and before the start of the local earnings season next week.

Housing Development Finance Corp. Ltd (HDFC), the nation’s biggest mortgage lender, was the top gainer on the S&P BSE Sensex. Hero MotoCorp Ltd climbed the most in five weeks. Drug maker Lupin Ltd rose to the highest level since 15 April. Bharat Heavy Electricals Ltd (Bhel), India’s biggest power-equipment maker, climbed for the third day this week.

The Sensex rose 0.53%, or 146.99 points, to 28,092.79 at the close in Mumbai Friday, taking the week’s gain to 1%. Greece will vote Sunday on a referendum over more austerity measures in exchange for aid, with polls showing the outcome is too close to call. Tata Consultancy Services Ltd, the nation’s largest software developer, will kick off earnings for Sensex companies on Thursday, 9 July, when it posts results for the quarter ended 30 June.

“In the short term, the market direction will depend on the how the Greek referendum plays out over the weekend," Alex Mathews, the head of research at Geojit BNP Paribas Financial Services Ltd., said by phone from Kollam in Kerala state. “Starting next week, the focus will be on earnings season. Fund flows from both domestic and foreign investors are strong."

Greek Prime Minister Alexis Tsipras is campaigning for citizens to vote “no," while the rest of the 19-nation currency bloc says a clear “yes" may get Greece back on the path to reform. A poll commissioned by Bloomberg News showed 43% of Greeks intend to reject the austerity demanded by creditors in exchange for financial aid, while 42.5% will accept the conditions.

Regardless of the result, Germany and the rest of the euro region are bracing for more political upheaval followed by tortuous negotiations. There’s no quick fix to the crisis because European Union rules make talks on financial aid difficult to restart, according to an official in Chancellor Angela Merkel’s government.

Earnings at the Sensex’s 30 companies, which have declined for two straight quarters, are poised to climb 11% in the three months ended 30 June, compared with a 24% increase a year earlier, according to data compiled by Bloomberg.

HDFC added 2.53% to its highest close since 7 April. Hero MotoCorp rallied 1.77%, the most since 29 May. Lupin gained 1.64%, taking this year’s rally to 33%. Bhel increased 1.3% to its highest since 17 March.

The Sensex has risen 2.2% this year and trades at 15.7 times projected 12-month earnings, compared with the five-year average of 14.4. The MSCI Emerging Markets Index is valued at a multiple of 11.8.

International investors bought a net $15 million of Indian stocks on 1 July, taking this year’s inflows to $6.2 billion. Bloomberg

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Published: 03 Jul 2015, 04:38 PM IST
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