Sixth Day of Gains Caps Best Winning Run in 3 Months for Sensex
Sensex Rally Extends as Foreign Funds Bet on Modi Keeping Power
(Bloomberg) -- Indian equities advanced as key indexes rose for a sixth straight session.
The benchmark S&P BSE Sensex added 0.2 percent to 38,095.07 at the 3:30 p.m. close in Mumbai, paring an advance of as much as 0.9 percent. The gauge capped its longest winning streak since Dec. 19. The NSE Nifty 50 Index climbed 0.3 percent to 11,462.20.
Overseas investors have been buying Indian stocks on bets that Prime Minister Narendra Modi will be able to form a national government after skirmishes with neighboring Pakistan last month. At least two pre-poll surveys indicated that Modi’s Bharatiya Janata Party will be able to win a majority with alliances. The Sensex and Nifty both rose more than 3.5 percent last week, capping their best weekly gain in more than four months.
Strategist View
- “It looks like the markets are exhausted and the Nifty faces some resistance at around 11,600,” said Avinash Gorakshakar, head of research at Mumbai-based Joindre Capital Services Ltd. “But this was expected as some profit booking will obviously come after such a sharp rally.”
The Numbers
- Eleven of the 19 sector indexes compiled by BSE Ltd. rose, paced by a gauge of property stocks.
- State-owned refiners Hindustan Petroleum Corp. and Indian Oil Corp. each gained more than 3 percent, the most among Nifty members.
- Maruti Suzuki India Ltd., India’s top carmaker, dropped 2.5 percent after a report that it cut production by 25 percent from a year earlier.
Analyst Notes/Market-Related Stories
- Tata Power Cut to Equal-weight at Morgan Stanley; PT 76 Rupees
- Kotak Mahindra Raised to Overweight at Morgan Stanley
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, Teo Chian Wei
©2019 Bloomberg L.P.