By -
Jun 19, 2014
Indian stocks advanced as the rupee
strengthened the most in a month after the U.S. Federal Reserve
said interest rates will remain low as growth rebounds.
Infosys Ltd. (INFO), the second-largest software maker, rose to a two-month high. Power-equipment maker Bharat Heavy Electricals Ltd. (BHEL) climbed for a third day this week. The currency gained 0.8 percent to 59.9437 per dollar, the most since May 16.
The S&P BSE Sensex (SENSEX) added 0.2 percent to 25,296.43 at 10:05 a.m. in Mumbai. The Fed said it expects borrowing costs to stay low for a “considerable time” after the end of its stimulus program, which has fueled equity gains in emerging markets. The Sensex has increased 20 percent this year, the most among BRIC markets, as foreigners bought $9.9 billion of local shares, the highest inflows among eight Asian markets tracked by Bloomberg.
“The liquidity onslaught will continue,” Kenneth Andrade, head of investments at IDFC Asset Management Co., which has $6.9 billion in assets, said in an interview with Bloomberg TV India today. “India will get a disproportionate amount of flows given the current environment.”
The Sensex slid 1.1 percent and yesterday and the rupee weakened to a seven-week low on concern India’s trade balance will deteriorate and inflation will quicken as violence in Iraq boosts oil prices. The nation imports about 80 percent of its fuel requirements.
The gauge trades at 15.6 times projected 12-month profits, near the most expensive level since April 2011. The MSCI Emerging Markets Index is valued at a multiple of 11.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Ravil Shirodkar
Infosys Ltd. (INFO), the second-largest software maker, rose to a two-month high. Power-equipment maker Bharat Heavy Electricals Ltd. (BHEL) climbed for a third day this week. The currency gained 0.8 percent to 59.9437 per dollar, the most since May 16.
The S&P BSE Sensex (SENSEX) added 0.2 percent to 25,296.43 at 10:05 a.m. in Mumbai. The Fed said it expects borrowing costs to stay low for a “considerable time” after the end of its stimulus program, which has fueled equity gains in emerging markets. The Sensex has increased 20 percent this year, the most among BRIC markets, as foreigners bought $9.9 billion of local shares, the highest inflows among eight Asian markets tracked by Bloomberg.
“The liquidity onslaught will continue,” Kenneth Andrade, head of investments at IDFC Asset Management Co., which has $6.9 billion in assets, said in an interview with Bloomberg TV India today. “India will get a disproportionate amount of flows given the current environment.”
The Sensex slid 1.1 percent and yesterday and the rupee weakened to a seven-week low on concern India’s trade balance will deteriorate and inflation will quicken as violence in Iraq boosts oil prices. The nation imports about 80 percent of its fuel requirements.
The gauge trades at 15.6 times projected 12-month profits, near the most expensive level since April 2011. The MSCI Emerging Markets Index is valued at a multiple of 11.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Ravil Shirodkar
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