Indian Stocks Snap Six Days of Losses as Investors Eke Out Value
Stocks rose as investors sought out shares that offer value, with the benchmark equity index set to snap six days of declines.
(Bloomberg) -- Indian stocks rose as investors sought out shares that offer value, with the benchmark equity index snapping six days of declines.
The S&P BSE Sensex advanced 0.6 percent to 38,242.81 in Mumbai, after swinging between gains and losses over six times. Fifteen of the 19 sector sub-indexes compiled by BSE Ltd. rose, led by healthcare stocks. Reliance Industries Ltd. was the biggest boost to the gauge, while Yes Bank Ltd. fell the most.
"Pockets of value have started emerging after the recent declines," A. K. Prabhakar, head of research at Mumbai-based IDBI Capital Market Services Ltd., said by phone. Investors are revisiting shares that now offer "reasonable valuations," he said.
While there’s optimism that economic growth topping 8 percent will help power India equities higher in the coming months, lingering external risks, most notably from the price of oil -- and its impact on the rupee -- and stretched valuations are giving some investors pause. A slide in emerging market stocks has also raised concerns of contagion.
To contact the reporter on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, James Cone
©2018 Bloomberg L.P.