Most Indian Equities Advance Ahead of Election Results
Most Indian Equities Advance Ahead of Election Results
(Bloomberg) --
Indian equities rose ahead of the official outcome of national elections on Thursday, with nearly all exit polls projecting the re-election of Prime Minister Narendra Modi.
The S&P BSE Sensex gained 0.4% to 39,110.21 at the 3:30 p.m. close in Mumbai, while the NSE Nifty 50 Index gained 0.3% to 11,737.90.
The benchmark stock index yesterday retreated after closing at a record high on May 20 as exit polls pointed to another term of government by Bharatiya Janata Party and its allies, with a comfortable majority. The MSCI gauge of Indian shares trades at almost 18 times its estimated one-year earnings compared with the MSCI Emerging Market Index’s 11.6 times.
Strategist View
- The markets were quiet today ahead of “the main event tomorrow,” said Avinash Gorakshakar, head of research at Mumbai-based Joindre Capital Services Ltd.
- If the Modi-led coalition crosses the 300-seat mark tomorrow, Nifty may touch 12,000, Gorakshakar said. “We will see a mild sell-off if the seat count is 220 to 250, but a massive one if they fall below 200.”
The Numbers
- Fifteen of the 19 sector indexes compiled by BSE Ltd. advanced, led by a gauge of banks.
- Twenty-five of the 31 Sensex members and 33 of the 50 Nifty companies gained.
- IndusInd Bank Ltd. rose the most among Nifty members, climbing 4.9%. The lender’s January to March net income lagged behind analyst estimates after it said about 30 billion rupees ($431 million) of loans to defaulter IL&FS group turned bad.
- Dewan Housing Finance Corp. fell 9.5%, the steepest on S&P BSE 200 and S&P BSE 500 indexes. The mortgage lender has stopped accepting fresh deposits after a debt rating downgrade.
- A BSE gauge of mid-sized companies retreated 0.2%, a second straight day of fall. The S&P BSE SmallCap Index gained 0.5%.
- Net incomes at 25 of the 39 Nifty companies that have reported earnings so far have either topped or met the analyst estimates, according to data compiled by Bloomberg.
- The NSE Volatility Index climbed 7.7%, extending its two-day advance to 17%.
Analyst Notes/Market-Related Stories
- Modi Exit Poll Euphoria Fades for Rupee as Challenges Loom Large
- Modi Win Not Enough for Pictet Asset to Buy More Indian Stocks
- JPMorgan Sees Value in Some India Bonds if Exit Polls Prove True
To contact the reporter on this story: Ameya Karve in Mumbai at akarve@bloomberg.net
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Margo Towie, Anto Antony
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