Singapore: Indian equities advanced amid continued optimism that Prime Minster Narendra Modi will adopt more policies to spur growth in Asia’s third-biggest economy.
The benchmark S&P BSE Sensex rose 0.6% to 39,683.29 at the 3:30 p.m. close in Mumbai, adding to a series of record highs this year after capping its best week in seven months on Friday. The NSE Nifty 50 Index advanced 0.7%, also marking a new all-time high close.
After Modi’s landslide election win, investors are looking to see how the government tackles slowing economic growth. A survey of economists predicts that a report on Friday will show the pace of growth in the first three months of this year was the slowest since the quarter through June 2017. Modi and his ministers will be sworn in on May 30.
Strategist View
“A clear mandate for [Modi’s party] implies that the current government policies have resulted in political dividend and hence are likely to be pursued further,” Nomura Holdings Inc.’s analyst Saion Mukherjee wrote in a note. “We expect continued focus on infrastructure buildout and the implementation of schemes/projects targeting the less affluent and rural India.”
The Numbers
Fourteen of the 19 sector indexes compiled by BSE Ltd. rose, led by a gauge of capital goods stocks. Eighteen of the 31 Sensex members and 32 of the 50 Nifty companies rose. NTPC Ltd. added 3.2% and was among the top gainers on the benchmark gauge after posting better-than-expected earnings on Friday. Manpasand Beverages fell 20%, most a record, after its offices were searched and Chief Financial Officer Paresh Thakkar was arrested on allegations of tax fraud.
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