Indian Stocks Touch Record Intraday High as U.S. Counts Votes
(Bloomberg) -- Indian stocks rose to a record high in intraday trading as investors assessed the potential outcome of the U.S. presidential election with vote-counting continuing.
The S&P BSE Sensex climbed 1.3% to 41,893.06 in Mumbai after briefly clearing a record high set in January. The NSE Nifty 50 Index advanced 1.2%, with both gauges marking their biggest weekly gains since June.
Reliance Industries Ltd. contributed most to the advance in the Sensex and had the steepest rise, climbing 3.8% after it announced a $1.3 billion investment in its retail unit by Saudi Arabia’s Public Investment Fund.
As investors assess the prospects of a Joe Biden presidency with a split Congress in the U.S., company earnings in India have so far been better than expected.
“For India, who wins might not make a material difference in the long run, but nearer-term IT stands to benefit with a Trump win, whereas Democrats would be better for pharma and stimulus,” analysts led by Aditya Narain at Edelweiss Financial Services wrote in a note.
Of the 37 companies on the Nifty 50 index that have so far reported results for the quarter through September, 25 have exceeded or matched expectations. Cipla Ltd. and ITC Ltd. are due to post earnings later today.
The yield on the benchmark 10-year government bond rose by one basis point to 5.87%, while the rupee strengthened 0.3% against the U.S. dollar to 74.1950.
- Fifteen of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of energy companies
- Twenty-one shares on the Sensex index rose while nine fell
- Reliance Industries Ltd. contributed most to gain and its 3.8% rise was the steepest; Tech Mahindra Ltd. fell the most, dropping 2.7%
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