India's Sensex Snaps 4-Day Losing Streak as Investors Hunt Value

(Bloomberg) -- Indian stocks advanced, snapping their longest losing streak in more than a month, as investors weighed the prospect of finding value against concern that slowing economic growth may erode corporate profits.

The S&P BSE Sensex rose 0.2% to 39,046.34 at the 3:30 p.m. close in Mumbai, ending a four-day losing streak, its longest since May 13. The measure swung between gains and losses during the day after retreating by about 3% from a record high close on June 3. The NSE Nifty 50 Index also advanced slightly.

India’s re-elected government begins its first parliamentary session next week, with investors looking for measures to stimulate economic growth that slowed to a five-year low in the January-March quarter. Farmers are awaiting the monsoon, which accounts for more than 70% of India’s annual rainfall, before planting crops and any delay may reduce harvests.

Strategist View

• Some equities, especially midcap and small stocks, have become attractively priced relative to earnings and investment decisions would depend a lot on government policies, including the budget as well as domestic and U.S. rate cuts, said A. K. Prabhakar, head of research at IDBI Capital Market Services Ltd. in Mumbai.

The Numbers

• Eighteen of 19 sector indexes compiled by BSE Ltd. advanced, led by gauges of power and metal companies.
• Twenty of the 31 Sensex members and 32 of the 50 Nifty stocks rose.
• Vedanta Ltd. was the top gainer on the benchmark. Yes Bank Ltd. declined 5.9%, to close at its lowest since Oct. 2014, after Chief Executive Officer Ravneet Gill said the lender will raise $1.2 billion over 18 months.

Analyst Notes/Equity-Related Stories

• Big Broker Turns Bullish as India’s Midcap Stocks Slump
• Fund Manager Who Predicted India Credit Crunch Still Sees Risks
• A $40b Gun Points at India’s Not-So-Rich: Andy Mukherjee

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, Margo Towie

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