Mumbai: Indian shares advanced in line with stocks across Asia and the benchmark equity index reached a fresh all-time high on the back of better-than-expected corporate earnings.
The S&P BSE Sensex Index rose 0.7 per cent to 32,623.02 at 10:48 am in Mumbai as July derivatives contracts expire. Financial companies paced gains, led by mortgage lender Housing Development Finance Corp and HDFC Bank Ltd.
A gauge of bank stocks was headed for its highest level since January 2002. The NSE Nifty 50 Index climbed 0.8 per cent to 10,101.10.
Analysts estimated inventory adjustment before India’s new goods and services tax took effect on July 1 would weigh on April-June earnings. Of the 22 Nifty companies that have so far announced results, net income for 17 have either met or exceeded estimates, exchange data show.
“Earnings undoubtedly have been better-than-expected,” said Deven Choksey, managing director of K.R. Choksey Shares & Securities Pvt. “With mid-cap stocks looking expensive, we are now seeing money chase large stocks with significant weightage on the benchmark index and that is primarily driving record highs for the gauge.”
