India Stocks Rise on Earnings Optimism, Share-Sale Prospects

Ronojoy Mazumdar

29 Oct 2019, 04:31 PM IST

(Bloomberg) -- Indian stocks rose on optimism that companies have weathered the worst of an economic slowdown. Tata Motors Ltd. surged for a second session after posting earnings that beat expectations.

The S&P BSE Sensex climbed 1.5% to 39,831.84 at the 3:30 pm close in Mumbai. The NSE Nifty 50 Index advanced 1.4%. India’s equity markets, which opened for a one-hour ceremonial session on Sunday, were closed for a holiday on Monday.

Sentiment is improving as companies report business wasn’t as slow as predicted in the quarter ended in September. The mood was also buoyed by signs that India is pushing ahead with selling shares in state-owned companies including Air India Ltd. and Bharat Petroleum Corp Ltd. Tata Motors climbed as much as 16%, extending a climb of the same magnitude Sunday, after reporting a narrower-than-expected loss in the second quarter.

Of the 23 Nifty companies that have announced results so far, 17 have either beaten or matched analyst estimates, while one didn’t have any estimates. Bharti Airtel Ltd. deferred its quarterly earnings release scheduled for today to Nov. 14 after a court ruling that requires the company to pay license fee dues to the government.

Strategist View

“If FDI rules are eased for the cause of disinvestment in state-owned companies like Air India, that will be very encouraging for the stock market,“ said Sudip Bandyopadhyay, who oversees investments at Inditrade Capital Ltd. in Mumbai.

The Numbers

Eighteen of 19 sector sub-indexes compiled by BSE Ltd. rose, led by a gauge of automobile companies.
Twenty seven out of the 31 stocks on the index made gains
Reliance Industries Ltd. contributed the most to the index advance, climbing 2.3%, Tata Motors Ltd. was the top performer with an 18% jump; Bharti Airtel Ltd. was the worst performer and had the biggest drag on the index, falling 3.4%.

India Stocks Rise on Earnings Optimism, Share-Sale Prospects