(Bloomberg) -- Indian equities advanced, driven by shares of software exporters as the rupee headed for a fall for the third straight day. Banks and financial stocks indexes, which initially advanced after the central bank eased bad-debt rules, retreated.
The benchmark S&P BSE Sensex climbed 0.4% to 39,784.52 at the close in Mumbai, paring a gain of as much as 0.9% earlier. The NSE Nifty 50 Index also rose. Both measures capped their first weekly declines in four on Friday, sliding from record high closes on Monday as corporate credit downgrades weighed on investor sentiment.
Indian equities measures have added about 10% this year, surpassed only by China, Australia and New Zealand among major regional markets. The MSCI gauge of Indian stocks is trading at more than 18 times its 12-month estimated earnings, 53% higher than a rival index of emerging-market equities and 19% more expensive than the MSCI World Index.
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Strategist Views
- “Software stocks helped the markets hold on to earlier gains and a falling rupee can be one of the main reasons,” said Purvesh Shelatkar, head of institutional broking at Monarch Networth Capital Ltd. in Mumbai.
- “A recent RBI interest-rate cut and giving banks headroom to practically negotiate with companies will translate into credit flow in broader market and companies, a positive,” Chakri Lokapriya, chief investment officer at TCG Asset Management, said.
The Numbers
- Fifteen of the 19 sector indexes compiled by BSE Ltd. advanced, paced by the S&P BSE Information Technology Index's 1.8% gain.
- Twenty of the 31 Sensex members and 34 of the 50 Nifty companies rallied.
- The rupee fell 0.2%, extending a three-day drop to 0.4%.
Analyst Notes/Market-Related Stories
- Easier Bad-Debt Rules Are Seen Helping Indian Banks: Street Wrap
- EM Review: Rate-Cut Hopes Offset Damage Done From Trade Tensions
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, Kurt Schussler
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