India’s benchmark stock index climbs to record amid results

Bloomberg

India’s benchmark stock index advanced to a record on Monday as better-than-expected company earnings continued to attract investors.
The S&P BSE Sensex gained 0.3% to 40,301.96 in Mumbai, ending above the previous peak on June 3. The gauge rose for a seventh straight session, to score its longest winning run since March. The NSE Nifty 50 Index also rose 0.4%.
Foreign funds bought more than $2 billion of shares in October, the most in a month since March, according to data compiled by Bloomberg. Nineteen out of 29 Nifty firms that have reported quarterly earnings have beaten or matched the average analyst estimate, while one didn’t have enough projections.
“Indian equities have seen a good rally recently, powered by improved global equity flows” amid better than expected results, Citigroup Inc strategists led by Surendra Goyal wrote in a note. “We see limited upside given valuations post the rally and the continued uncertainty over growth outlook,” the note added.
“India is probably one of the few economies where growth will re-accelerate next calendar year, it stands very well among its peers,” said David Gaud, chief investment officer for Asia at Pictet Wealth Management in Singapore.
Twelve of 19 sector sub-indexes compiled by BSE Ltd advanced, led by a gauge of metal companies.
Housing Development Finance Corp, Infosys Ltd, ICICI Bank Ltd contributed most to the index advance.
Vedanta Ltd was among the top gainers on the benchmark index, while Yes Bank Ltd dropped after reporting a quarterly loss.