Mumbai: Indian stocks rose, with the benchmark index gaining for the first time in six days, as Reliance Industries Ltd (RIL) climbed after its fuel exports surged and Bharti Airtel Ltd advanced as earnings beat some estimates.
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RIL, the nation’s biggest company by market value, jumped 2.9% as shipments from its oil refining complex doubled in January to the highest in five months, according to data compiled by Bloomberg. Bharti Airtel, the largest mobile-phone operator, rose 1.8% after profit excluding one-time items beat some analysts’ expectations.
The Bombay Stock Exchange sensitive index added 68.40 points, or 0.4%, to 18,090.62 in Mumbai. The gauge, the world’s worst performer this year after Egypt, on Tuesday dropped to its lowest level since August. Valuations of companies on the measure have dropped to 17.1 times estimated earnings from last year’s high of 21.5 times in March, according to data compiled by Bloomberg. The gauge’s 14-day relative-strength index slipped to 25.753 on Tuesday, the lowest since 27 October 2008, according to Bloomberg data. Some investors see readings below 30 as a signal to buy.
“Valuations have come to a reasonable level, leading to some value buying,” said Ranjit Kapadia, vice-president for institutional research at HDFC Securities Ltd in Mumbai. “We need to wait and watch if this is sustainable.”
He is recommending shares of healthcare companies such as Lupin Ltd and Aurobindo Pharma Ltd.
The Sensex on Tuesday closed 14% below a 5 November record, exceeding the 10% slump that signifies a so- called correction to some investors, amid concern rising inflation will prompt further tightening in monetary policy, curbing growth.
The S&P CNX Nifty Index on the National Stock Exchange advanced 0.3% to 5,432.00. The BSE 200 Index added 0.3% to 2,238.01.
RIL, controlled by billionaire Mukesh Ambani, climbed 2.9% to Rs921.3, its biggest gain since 10 December. Exports of fuel products from its Jamnagar facility rose to at least 1.2 million tonnes in January, the highest in five months, according to data from Clarkson Research Services Ltd, a unit of the world’s biggest shipbroker.
Bharti Airtel rose 1.8% to Rs322.80, its biggest advance in three weeks. “Profit beat projections when excluding Rs490 crore ($107 million) in one-time items,” said Ganesh Ram, an analyst at Kim Eng Securities India Pvt. Ltd in Mumbai.
Global funds sold a net 9.01 billion rupees of Indian equities on 31 January, according to data on the website of the Securities and Exchange Board of India.
Overseas investors sold $1.1 billion more shares than they bought in January, the first monthly outflow since May.
Graphic by Yogesh Kumar/Mint