(Bloomberg) -- Indian stocks extended gains from a fourth weekly advance, propelling Asia’s best performing benchmark index this year to a record high, as investors refocused on earnings optimism as global markets steadied.
The S&P BSE Sensex added 0.9 percent to 38,278.75 in Mumbai. All but three of 19 sectoral sub-indexes compiled by BSE Ltd. rose, led by the gauges of capital goods and industrial companies. Larsen & Toubro Ltd.’s 6.7 percent advance made it the top performer on the main measure after the engineering and construction company unveiled a plan to buy back its shares.
Asia’s best performing stock market this year has so far been able to avoid contagion risk from other emerging markets, most of which have fallen amid trade tensions, China’s economic slowdown and U.S. dollar strength.
“Investors will focus on stocks that have strong balance sheets, respectable management quality and that delivered good numbers in the just concluded earnings,” said Sanjeev Zarbade, vice president of research at Kotak Securities Ltd.
Earnings at companies listed in India can return to 2006 highs if the nation doesn’t enact any more “disruptive” economic policies, according to BNP Paribas Asset Management. Earnings of most of the companies on the NSE Nifty 50 Index either met or exceeded average analyst estimates for end-June quarterly results, which concluded last week.
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