By -
Jul 1, 2014
India’s benchmark stock index rose
toward a three-week high, led by metal producers and automakers,
after capping their best quarterly advance in almost five years.
Hindalco Industries Ltd. (HNDL) climbed to a three-year high after CLSA Asia-Pacific Markets forecast the company’s share price will double in four years. Mahindra & Mahindra Ltd. (MM) added 1.6 percent as vehicle makers rose before monthly sales figures.
The S&P BSE Sensex (SENSEX) rose 0.4 percent to 25,516.34 at 10:03 a.m. in Mumbai. The gauge advanced 14 percent in the quarter ended June 30, the most since the three months through September 2009, as international investors bought Indian stocks on expectations a new government under Prime Minister Narendra Modi will curb Asia’s fastest consumer inflation and boost an economy growing at near the slowest pace in a decade. The government presents its federal budget on July 10.
“Investors are buying cyclicals amid anticipation that the federal budget will propose measures to boost infrastructure and revive growth,” Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd., said by phone from Kerala, south India. “There is still steam left in the rally and we expect positive momentum to continue as some of the stocks are not too aggressively priced.”
The Nifty climbed 0.3 percent to 7,637.35. Hindalco surged 4.5 percent after CLSA raised its rating on the stock to buy, saying the stock will surge on a “multi-year deleveraging cycle.” Tata Steel Ltd. (TATA) advanced 2.2 percent while copper producer Sesa Sterlite Ltd. (SSLT) gained 2.7 percent.
Mahindra advanced the most in four weeks. Maruti Suzuki India Ltd. (MSIL) and Tata Motors Ltd. increased at least 1 percent. Automakers announce monthly sales numbers today.
Shares of Indian Oil Corp. (IOCL) advanced 1.3 percent after the company said yesterday it will raise gasoline prices by 1.69 rupees (3 cents) per liter, and diesel by 0.50 rupees per liter, effective today.
Overseas investors bought a net $37.8 million of Indian shares on June 27, extending this year’s inflow to $9.92 billion, the highest after Taiwan among eight Asian markets tracked by Bloomberg.
The Sensex has surged 20 percent this year, the best performer among the world’s 10 biggest markets, and trades at 15.6 times projected 12-month profits. The MSCI Emerging Markets Index is valued at 11 times.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Matthew Oakley, Allen Wan
Hindalco Industries Ltd. (HNDL) climbed to a three-year high after CLSA Asia-Pacific Markets forecast the company’s share price will double in four years. Mahindra & Mahindra Ltd. (MM) added 1.6 percent as vehicle makers rose before monthly sales figures.
The S&P BSE Sensex (SENSEX) rose 0.4 percent to 25,516.34 at 10:03 a.m. in Mumbai. The gauge advanced 14 percent in the quarter ended June 30, the most since the three months through September 2009, as international investors bought Indian stocks on expectations a new government under Prime Minister Narendra Modi will curb Asia’s fastest consumer inflation and boost an economy growing at near the slowest pace in a decade. The government presents its federal budget on July 10.
“Investors are buying cyclicals amid anticipation that the federal budget will propose measures to boost infrastructure and revive growth,” Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd., said by phone from Kerala, south India. “There is still steam left in the rally and we expect positive momentum to continue as some of the stocks are not too aggressively priced.”
PMI Data
Manufacturing in India grew for an eighth consecutive month in June, according to the HSBC Holdings Plc and Markit Economics purchasing managers index today. The gauge rose to 51.5, the highest level since February, from 51.4 in May. A reading of more than 50 indicates expansion.The Nifty climbed 0.3 percent to 7,637.35. Hindalco surged 4.5 percent after CLSA raised its rating on the stock to buy, saying the stock will surge on a “multi-year deleveraging cycle.” Tata Steel Ltd. (TATA) advanced 2.2 percent while copper producer Sesa Sterlite Ltd. (SSLT) gained 2.7 percent.
Mahindra advanced the most in four weeks. Maruti Suzuki India Ltd. (MSIL) and Tata Motors Ltd. increased at least 1 percent. Automakers announce monthly sales numbers today.
Shares of Indian Oil Corp. (IOCL) advanced 1.3 percent after the company said yesterday it will raise gasoline prices by 1.69 rupees (3 cents) per liter, and diesel by 0.50 rupees per liter, effective today.
Overseas investors bought a net $37.8 million of Indian shares on June 27, extending this year’s inflow to $9.92 billion, the highest after Taiwan among eight Asian markets tracked by Bloomberg.
The Sensex has surged 20 percent this year, the best performer among the world’s 10 biggest markets, and trades at 15.6 times projected 12-month profits. The MSCI Emerging Markets Index is valued at 11 times.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Matthew Oakley, Allen Wan
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