India Stocks Track Asian Peers Higher to Mark Another Record
(Bloomberg) -- India stocks rose for a fifth straight day, tracking broad gains in Asian peers, as a slowing pace of local coronavirus infections boosted optimism over an economic recovery.
The S&P BSE Sensex climbed 0.6% to 47,613.08 in Mumbai. The NSE Nifty 50 Index advanced 0.4%. Both indexes extended record highs even as trading volumes dwindle heading into the year-end.
Stocks were mostly higher in Asia with European equities and U.S. futures also gaining Tuesday after the House backed higher stimulus checks following President Donald Trump’s signing of the virus relief bill.
Foreign investors have piled about $18.5 billion into Indian stocks this quarter, set to be a record. That’s been a big force behind the benchmarks hitting successive all-time highs. An easing of the nation’s virus caseload is also boosting optimism that a rapid recovery in economic growth will help company earnings catch up with high valuations.
“Investors are buying in the anticipation that growth will be very strong next year,” said A.K. Prabhakar, head of research at IDBI Capital Market Services Ltd. in Mumbai.
The yield on the benchmark 10-year government bond increased by one basis point to 5.89%, while the rupee strengthened 0.1% to 73.4350 against the U.S. dollar.
- Twelve of 19 sector sub-indexes compiled by BSE Ltd. fell, with a gauge of metal producers dropping the most
- Sixteen stocks rose on the Sensex while 14 declined
- Housing Development Finance Corp contributed the most to the index’s advance and increased 1.9%; IndusInd Bank was the biggest winner with a 5.4% jump
©2020 Bloomberg L.P.