Mumbai: Most Indian stocks advanced, led by companies tied to the economy, as some investors judged Friday’s Brexit-induced selloff was overdone.
Drugmaker Dr Reddy’s Laboratories Ltd. climbed to a three-month high. State Bank of India surged 2.8 per cent. Tata Consultancy Services Ltd. and Infosys Ltd, India’s top software exporters that earn about a quarter of their revenue from Europe, were the worst performers on the benchmark S&P BSE Sensex.
Three stocks advanced for every one that fell on the broader S&P BSE 100 Index, which rose 0.3 per cent at the close in Mumbai. The Sensex closed little changed after swinging between gains and losses 20 times. The S&P BSE SmallCap jumped 1.5 per cent, the most since March 30. The S&P BSE MidCap gained 0.8 per cent, the most since May 27. The benchmark Sensex tumbled 2.2 per cent on Friday amid a global selloff that erased more than $2.5 trillion (Dh9.2 trillion) from global equity values.
“Sectors linked to the domestic economy and not affected by Brexit are outside the benchmark gauges,” Chokkalingam G, managing director at Equinomics Research & Advisory Pvt. in Mumbai, said by phone. “The action was in the broader market, which has become a playground for domestic investors who prefer to bet on small- and mid-cap stocks.”
Dr. Reddy’s climbed 3 per cent, the best performer on the Sensex. Sun Pharmaceutical Industries Ltd, the nation’s most valuable drugmaker, rose 2.7 per cent in a fourth day of advance, while Cipla Ltd. added 2.6 per cent.
Larsen & Toubro Ltd., the largest engineering company, climbed the most since June 15. ITC Ltd, India’s biggest cigarette company, gained 1.4 per cent. Adani Ports & Special Economic Zone Ltd. advanced 1 per cent. State Bank of India jumped the most since June 15. ICICI Bank Ltd. gained 0.8 per cent.
Tata Consultancy plunged 3 per cent, while Infosys fell 2.4 per cent. Wipro Ltd., the third-biggest software exporter, lost 1.3 per cent in a second day of declines. The stock had risen for eight straight days through Thursday. HCL Technologies Ltd. slid 0.9 per cent.
State-owned refiners Hindustan Petroleum Corp. and Bharat Petroleum Corp. rallied to records, rising 4.2 per cent and 2.4 per cent respectively.
Sugar stocks rallied. Shree Renuka Sugars Ltd. and Bajaj Hindusthan Sugar Ltd. surged 11 percent each. Shree Renuka had lost 10 per cent in four days through Friday. Balrampur Chini Mills Ltd. soared 10 per cent. Bannari Amman Sugars Ltd. jumped 14 per cent, taking this year’s rally to 110 per cent.
Overseas funds sold $85 million of local shares on June 24. Global investors have bought $572 million of shares in June, set for the fourth month of purchases, data compiled by Bloomberg show.
