India Sensex Gains, Along With Volatility, Ahead of Poll Results
(Bloomberg) -- India stocks rose as investors took advantage of persistent selling by overseas funds that had pushed the benchmark index within a whisker of breaching the 100-day moving average.
The S&P BSE Sensex rose 0.8% to 37,393.48 in Mumbai. The NSE Nifty 50 Index also climbed 0.9%. Foreigners have sold a net $413.7 million of India stocks this week through May 14, data compiled by Bloomberg show, as the U.S.-China trade dispute continues to escalate. The benchmark index is down more than 4% in May, set for its worst monthly performance since October.
Anticipating the outcome of the country’s general elections amid a cooling domestic economy has also kept investors on edge, with the India NSE Volatility Index is near its highest level since September 2015 after surging in the past month.
The last phase of voting for India’s national ballot takes place on May 19, with exit polls released later that night. Vote counting and the poll’s results will be declared on May 23.
- “Sentiment remains fragile. Investors are expected stay on the sidelines and wait for the exit poll results that come in Sunday,” said Chokkalingam G, managing director of Equinomics Research & Advisory Pvt. in Mumbai. “Investors will discount the actual election results in trade based on exit poll trends on Monday.”
- Sixteen of the 19 sector sub-indexes compiled by BSE Ltd. gained led by a gauge of oil and gas companies.
- Infosys contributed the most to the index advance, increasing 2.4%, while Bajaj Finance had the largest gain, rising 3.6%.
- ITC Ltd was the biggest drag on the index, declining 0.77%. Yes Bank had the biggest drop, falling 3.6%.
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