MUMBAI • Indian equities advanced as key indexes rose for a sixth straight session.
The benchmark S&P BSE Sensex added 0.2% to 38,095.07 at the 3:30pm close in Mumbai yesterday, paring an advance of as much as 0.9%. The gauge capped its longest winning streak since December 2019. The National Stock Exchange of India’s Nifty 50 Index climbed 0.3% 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 neighbouring 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% last week, capping their best weekly gain in more than four months.
“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.”
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%, the most among Nifty members. Maruti Suzuki India Ltd, India’s top carmaker, dropped 2.5% after a report that it cut production by 25% from a year earlier.
Meanwhile, the Indian rupee advanced 0.9% yesterday to 68.46 per dollar, its highest level since August 2018, widening month-to-date gains to 3.4%. — Bloomberg