Mumbai:
India’s benchmark equity index climbed to a record high as the NSE Nifty 50 Index briefly breached the record 10,000 mark amid better-than-expected earnings.
The S&P BSE Sensex Index rose 0.1 per cent to 32,265.85 at 10:39am in Mumbai. Eight out of the 13 indexes compiled by BSE Ltd. advanced, while a gauge of banks is headed for its highest level since January 2002. Automaker Hero Motocorp Ltd. was the top performer on the 30-share index, ahead of its results Tuesday. The Nifty pulled back after briefly crossing the 10,000 level, paring most of its early gains.
“The markets have crossed a sentimental barrier of 10,000, which is a phenomenal feat in itself,” said Nitasha Shankar, senior vice president and head of research at Mumbai-based Yes Securities (India) Ltd. While India is a “shining story,” investors should still book some profits whenever new peaks are attained, she added citing geopolitical concerns as a reason.
The corporate earnings season for the April-June period has started on an encouraging note, with the combined net incomes of 119 companies up 11 per cent, better than the 10 per cent growth reported by the sample in the year-ago period, Equinomics Research & Advisory Pvt. said in a note on Tuesday.
“Early earnings numbers are better than expected with an uptick in consumption, and concerns about the impact of goods and services tax appear to have been exaggerated,” said Sunil Sharma, chief investment officer at Sanctum Wealth Management Pvt. “Financials continue to lead and the earnings for private banks and non-bank finance companies are reassuring investors that the prospects are good for a pickup in growth later in the year.”
— Bloomberg
