India’s sensex climbs to a six-month high

Bloomberg

India’s stocks advanced with the benchmark equity index rising to its highest level in six months, led by financial services companies.
The S&P BSE Sensex climbed for a third session, increasing 0.6 percent to 37,752.17 in Mumbai, bringing its gain for this year to 4.7 percent. The NSE Nifty 50 Index increased 0.4 percent.
Both indexes are headed for monthly gains amid optimism Prime Minister Narendra Modi’s government may win another term when election results are announced in May, with a rise in nationalistic sentiment seen by some investors as boosting its prospects.
“Volatility is a given but strong stock and sector-specific buying will remain intact,” said Ritesh Ashar, chief strategy officer at Mumbai-based Kifs Trade Capital Pvt. Ltd.
“The positive sentiment around the rising possibility of a second term for the current government will offset any sharp decline,” Ashar added.
Five of 19 sector sub-indexes compiled by BSE Ltd. advanced led by a gauge of banking companies. Spicejet Ltd. slipped 2.1% after it suspended operations of 737 MAX on the regulator’s order.
HDFC Bank contributed the most to the index advance, increasing 2.6 percent.
IndusInd Bank had the largest gain, rising 4.2 percent. Bharti Airtel was the biggest drag on the index and had the biggest drop, declining 3.8 percent. 30-day price volatility rose to 11.61 percent compared with 11.57 percent in the previous session and the average of 11.18 percent over the past month.