(Bloomberg) -- India stocks rose, buoyed by prospects of earnings growth.
The S&P BSE Sensex climbed 0.8% to 49,792.12 in Mumbai to close just shy of 50,000 points, while the NSE Nifty 50 Index advanced 0.9%. Both measures gained for a second day to settle at record highs.
“Earnings are coming in and they are reasonably good while commentary is supportive,” said Amit Khurana, head of research at Dolat Capital Market Ltd. in Mumbai.
Foreign fund purchases have pushed India's key equity gauges to successive new records this year, while five out of the six Nifty 50 companies that have reported quarterly results so far have beaten estimates. Still, technical signals suggest the market is overbought, and some strategists suggest earnings estimates are overly optimistic.
Bajaj Finance Ltd. reported net income lower than analyst estimates' after market close. Bajaj Finserv Ltd. is due to report results for the quarter ended December later today.
The yield on the benchmark 10-year government bond increased by one basis point to 5.92%, while the rupee appreciated 0.2% to 73.0275 per U.S. dollar.
The Numbers
- Sixteen out of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of automakers
- Twenty shares on the Sensex index rose while 10 fell
- Reliance Industries Ltd. contributed most to the index advance with a 1.9% jump, while Maruti Suzuki Ltd. was the biggest winner, rising 2.8%
Related Stories
- Here's Why India's Sensex Could Struggle to Breach 50,000: Chart
- India's Budget Must Fix a Broken Labor Market to Boost Demand
- A Surge in Bad Debt Is Set to Worsen India's Shadow Bank Crisis
©2021 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
