India Stocks Advance as Earnings Season Begins on Positive Note
(Bloomberg) -- India stocks rose, along with peers from Europe to Asia, as earning season kicked off on a positive note amid investor optimism the U.S.-China trade discussions were on track.
The S&P BSE Sensex climbed 0.6 percent to 36,212.91 in Mumbai. The broader NSE Nifty 50 Index added 0.5 percent.
Private sector lender IndusInd Bank reported October-December net income of 9.85 billion rupees that beat the average analyst estimates, sending the stock to a three-week high. Asia’s largest software exporter, Tata Consultancy Services Ltd., will outline its performance on Thursday, followed by Infosys on Friday.
Trade developments between the U.S. and China remain a focal point, with U.S. President Donald Trump reportedly eager to strike a deal to help revive the flagging stock rally he took credit for.
- Thirteen of 19 sub-indexes compiled by BSE Ltd. rose, led by a measure of consumer companies.
- Housing Development Finance Corp Ltd. and ITC Ltd gave the biggest boosts to the benchmark index.
- HT Media Ltd. climbed over 20%, DB Corp Ltd. surged 7.6% and Jagran Prakashan Ltd. advanced 1.9% after the government raised advertising rates.
- Infosys gained after the company said it will consider buying back shares on Jan. 11.
- “We expect private sector banks to report strong earnings along with capital goods and consumer companies,” said Chokkalingam G, managing director at Equinomics Research & Advisory Pvt. Ltd. “Cement, telecom and autos should see a muted performance.”
- “Financials are likely to be the stand-out performer of the earnings season, with multiple improvements backed by a pick-up in loan growth, stable to improving net interest margins, moderating slippages (loans turning bad) and treasury gains,” analysts led by Dhirendra Tiwari at Mumbai-based Antique Stock Broking Ltd. wrote in a note
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