India’s equity index continues to rise for a fourth day as investors are expecting good quarterly earnings.
Singapore: India’s benchmark equity index rose for a fourth day as investor enthusiasm over company earnings outweighed anxiety about global trade conflicts and the rising price of oil.
The benchmark S&P BSE Sensex index advanced 0.9 per cent to 35,462.79 at 9:36 am in Mumbai, set for its longest winning streak since 23 August. All 19 sector sub-gauges compiled by BSE Ltd. gained, led by technology companies. Infosys Ltd. climbed as much as 3.8 per cent after posting quarterly net income that exceeded analysts’ average estimate. Among other gainers, State Bank of India Ltd. and ICICI Bank Ltd. each rose by more than 1 per cent.
India’s quarterly earnings season has started on a positive note. Net income at four of seven NSE Nifty 50 Index companies that have reported so far have met or beaten estimates, data compiled by Bloomberg show. Reliance Industries Ltd. is scheduled to report its results later today.
“Beaten down stocks are being supported by the results season, which has been alright so far, although we need more beats,” said Chokkalingam G, managing director at Equinomics Research & Advisory. High oil prices contributing to rupee weakness, however, will continue to keep markets volatile, he said.
The Sensex’s relative strength index has recovered since last Thursday dropping below a level that signals to some investors that its oversold, after the benchmark slumped more than 13 per cent from a peak in August. In a rebound, the measure climbed the most in more than two years Friday, to recoup a year-to-date advance. – Bloomberg