By -
Jan 14, 2013
India’s benchmark equities index
surpassed 20,000 for the first time in more than two years, as
foreign funds increased their holdings of the nation’s shares.
The BSE India Sensitive Index (SENSEX), or Sensex, rose 0.1 percent to 19,934.29 at 9:50 a.m. Mumbai time, poised for the highest close since Jan. 6, 2011. The gauge has increased 25 percent from its May 23 low. Tata Consultancy Services Ltd. (TCS), India’s biggest software exporter, jumped 2.4 percent after reporting profit that beat estimates. Bharti Airtel Ltd., India’s largest mobile-phone operator, added 1.2 percent.
The Sensex had its biggest annual rally last year since 2009 as Prime Minister Manmohan Singh took measures to draw foreign investment to boost an economy growing at the slowest pace in three years, and to avert a credit-rating downgrade. Foreigners plowed a net $24.5 billion into local shares last year, the highest among 10 Asian markets tracked by Bloomberg. They’ve bought $1.6 billion of stocks this year, about three times the level at the same time in 2012, the data show.
The Sensex’s rally last year was more than twice the gain of the MSCI BRIC index in 2012, and compared with a 3 percent increase for the Shanghai Composite Index. (SHCOMP) The Sensex trades at 15.8 times estimated earnings. That compares with a multiple of 11.6 for Brazil’s Bovespa Index, 5.6 for Russia’s Micex Index (INDEXCF) at 5.6 times and 10 for China’s Shanghai Composite Index. The MSCI Emerging Markets Index is valued at 11 times estimated earnings, data compiled by Bloomberg show.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
The BSE India Sensitive Index (SENSEX), or Sensex, rose 0.1 percent to 19,934.29 at 9:50 a.m. Mumbai time, poised for the highest close since Jan. 6, 2011. The gauge has increased 25 percent from its May 23 low. Tata Consultancy Services Ltd. (TCS), India’s biggest software exporter, jumped 2.4 percent after reporting profit that beat estimates. Bharti Airtel Ltd., India’s largest mobile-phone operator, added 1.2 percent.
The Sensex had its biggest annual rally last year since 2009 as Prime Minister Manmohan Singh took measures to draw foreign investment to boost an economy growing at the slowest pace in three years, and to avert a credit-rating downgrade. Foreigners plowed a net $24.5 billion into local shares last year, the highest among 10 Asian markets tracked by Bloomberg. They’ve bought $1.6 billion of stocks this year, about three times the level at the same time in 2012, the data show.
The Sensex’s rally last year was more than twice the gain of the MSCI BRIC index in 2012, and compared with a 3 percent increase for the Shanghai Composite Index. (SHCOMP) The Sensex trades at 15.8 times estimated earnings. That compares with a multiple of 11.6 for Brazil’s Bovespa Index, 5.6 for Russia’s Micex Index (INDEXCF) at 5.6 times and 10 for China’s Shanghai Composite Index. The MSCI Emerging Markets Index is valued at 11 times estimated earnings, data compiled by Bloomberg show.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
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