Sensex Posts Best Week Since May as Investors Mull Outlook
The European Union and the U.K.’s agreement on a Brexit deal sent the Sensex to its best close in a week yesterday.
(Bloomberg) -- India’s benchmark stock index just had its best week since May, buoyed by investor optimism about companies’ outlooks amid a flurry of earnings reports.
The S&P BSE Sensex Index closed up 0.6% to 39,298.38 in Mumbai, capping a weekly advance of 3.1%. The gauge posted its sixth day of gains, its longest winning streak since March. The NSE Nifty 50 Index added 0.7% today.
The European Union and the U.K.’s agreement on a Brexit deal sent the Sensex to its biggest rise in a week yesterday. Still, doubts whether lawmakers will endorse the accord emerged overnight, deflating the euphoria.
At home, three of six Nifty companies that have reported results so far have missed analyst estimates for net income, while one has matched and two have beaten. Investors will scan minutes of the Reserve Bank of India’s latest monetary policy committee meeting after today’s stock market close for commentary that might shed light on its next steps to spur economic growth.
Strategist View
“Sentiment will be positive but there will be a consolidating phase,“ said Umesh Mehta, head of research at Samco Securities Ltd. in Mumbai. “There was a positive ripple because Brexit was a good event but then we are going to see some amount of profit-booking on all those stocks.”
The Numbers
- All 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of power companies
- Reliance Industries Ltd. contributed the most to the index advance, increasing 1.4% while Yes Bank had the largest gain, rising 8.4%
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--With assistance from Nupur Acharya.
To contact the reporter on this story: Ishika Mookerjee in Singapore at imookerjee@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Margo Towie
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