A man looks at a screen across the road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.

India's Sensex Climbs to a Six-Month High; Volatility Rises

(Bloomberg) -- India’s stocks advanced with the benchmark equity index rising to its highest level in six months, led by financial-services companies.

The S&P BSE Sensex climbed for a third session, increasing 0.6 percent to 37,752.17 in Mumbai, bringing its gain for this year to 4.7 percent. The NSE Nifty 50 Index increased 0.4 percent.

India's Sensex Climbs to a Six-Month High; Volatility Rises

Both indexes are headed for monthly gains amid optimism Prime Minister Narendra Modi’s government may win another term when election results are announced in May, with a rise in nationalistic sentiment seen by some investors as boosting its prospects.

Strategist View

“Volatility is a given but strong stock and sector-specific buying will remain intact,” said Ritesh Ashar, chief strategy officer at Mumbai-based Kifs Trade Capital Pvt. Ltd. “The positive sentiment around the rising possibility of a second term for the current government will offset any sharp decline.”

The Numbers

  • Five of 19 sector sub-indexes compiled by BSE Ltd. advanced led by a gauge of banking companies.
  • Spicejet Ltd. slipped 2.1% after it suspended operations of 737 MAX on the regulator’s order.
  • HDFC Bank contributed the most to the index advance, increasing 2.6 percent. IndusInd Bank had the largest gain, rising 4.2 percent.
  • Bharti Airtel was the biggest drag on the index and had the biggest drop, declining 3.8 percent.
  • 30-day price volatility rose to 11.61 percent compared with 11.57 percent in the previous session and the average of 11.18 percent over the past month.

Analyst Notes/ Market-Related Stories

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