Mumbai: India’s benchmark index advanced to a second consecutive record as the earnings season continued to woo investors.
The S&P BSE Sensex Index gained 0.5 per cent to 40,653.74 at the 3:30pm close in Mumbai, rising for a ninth day in 10. The NSE Nifty 50 Index advanced 0.4 per cent to close above the 12,000 level for the first time since June 4.
The Sensex’s 50-day moving average last week crossed above its 200-day line to form a so-called golden cross, which some analysts read as a sign that gains may continue.
Foreign investors have bought stocks worth $323 million in November, after pumping in more than $2 billion in the previous month. Twenty-two out of 35 Nifty 50 firms that have reported quarterly earnings so far this season have beaten or matched the average analyst estimate. Two companies didn’t have enough projections, while one was incomparable.
“Most of the Nifty 50 companies’ results were better than or matching expectations, which has also increased optimism in the investor community, thus minimising downside for the market,” Shrikant Chouhan, an analyst for technical research at Kotak Securities Ltd, wrote in a note on Wednesday.
“Momentum is building on the upside with wide participation, which is a good sign,” Manav Chopra, head of equity research at Indiabulls Ventures Ltd, wrote in a note on Wednesday. “Traders should look at dips as buying opportunities.”