India Stocks Cool Down After Setting a Record Intraday High
(Bloomberg) -- India's benchmark Sensex index pared gains from a record intraday high following a U.S. interest rate cut that spurred expectations that foreign funds might be attracted to Indian shares.
The S&P BSE Sensex climbed 0.2% to 40,129.05 at the 3:30 p.m. close in Mumbai, gaining for a fifth day. The NSE Nifty 50 Index advanced 0.3%.
Seventeen of 26 Nifty companies that have reported earnings so far have either beaten or matched estimates, while one had no estimates, according to Bloomberg calculations. Indian Oil Corp. reported net income below the lowest analyst estimate.
Strategist View
- “The rate cut by the U.S. Federal Reserve should promote the inflow of foreign funds,” said Chokkalingam G, the Mumbai-based founder of Equinomics Research & Advisory Pvt, which advises clients on equity investments. “There are many stocks available at good valuations in the broader market.”
- “We do not believe the current rise in share prices has fully captured India's longer term economic improvement, given that the return on equity of the Indian market was on the verge of recovering from a multi-year low,” said Felix Lam, senior portfolio manager at BNP Paribas Asset Management, in Hong Kong.
The Numbers
- Sixteen of 19 sector sub-indexes compiled by BSE Ltd. gained, led by a gauge of technology companies
- Eighteen shares out of the 31 on the Sensex rose, while 13 fell
- Infosys Ltd. contributed most to the index advance with a 3.8% gain, while Yes Bank Ltd.'s 24% jump was the biggest. HDFC Bank Ltd. weighed most on the gauge with a 1.5% fall, while Tech Mahindra Ltd.‘s 2.1% drop was the steepest.
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--With assistance from Anto Antony and Ishika Mookerjee.
To contact the reporter on this story: Ronojoy Mazumdar in Mumbai at rmazumdar7@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Teo Chian Wei
©2019 Bloomberg L.P.
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