Sensex, Nifty snap ‘losing streak’ on earnings optimism

Bloomberg

India’s benchmark stock index advanced for the first time in four days as earnings optimism outweighed concerns that Asia’s third-biggest economy may be crimped by higher oil prices.
The S&P BSE Sensex climbed 1.3 percent to 39,054.68 in Mumbai, its steepest daily gain in more than six weeks. The NSE Nifty 50 Index rose by the same magnitude, its biggest daily advance since January 31. Five of 49 Nifty companies have reported earnings so far and have beaten or matched estimates, according to data compiled by Bloomberg.
Volatility may increase as concern about the price of oil, India’s biggest import, adds to anxiety over the outcome of national elections. Foreign investors turned net sellers for the first time since April 4, according to provisional data from the National Stock Exchange. They have pumped $7.8 billion into local stocks this year, according to data compiled by Bloomberg.
“We expect markets to continue to remain volatile in the near term given the earnings outcome and central election progress,” Jayant Manglik, president at Religare Broking said. Any correction in quality large and mid-sized companies with strong growth prospects should be considered a good buying opportunity, he said.
All but one of the 19 sector indexes compiled by BSE Ltd advanced, led by a gauge of oil & gas stocks. The S&P BSE Auto Index fell 0.3 percent. Software services exporter HCL Technologies Ltd’s 3.4 percent gain to a record close was the steepest among Sensex members. Twenty-four of the 31 Sensex members and 41 of the 50 Nifty companies gained. Indiabulls Real Estate Ltd jumped 9.8 percent, the most in two weeks, after a report that the founders are in talks to sell their entire stake in the company.