Mumbai: Indian stocks extended gains for a third day as investors viewed equities will benefit from government policies and earnings-growth prospects.
The S&P BSE Sensex rose 0.3 per cent to 36,825.10, a fresh record, in Mumbai. Cement stocks rallied after ACC Ltd’s second quarter net income beat estimates. Daiwa Capital Markets boosted exposure to Indian stocks citing solid earnings growth, accommodating policies and encouraging domestic demand. Hero MotoCorp Ltd. fell the most on concern profit margins may narrow. Investors are also awaiting the expiry of July futures and options contracts on Thursday.
The reduction in political uncertainty coupled with the cut in GST rates aids consumption and thus economy and stocks, said Jagannadham Thunuguntla, senior vice president and head of research for wealth at Centrum Broking Pvt in Mumbai. Midcaps can play catch up even as some volatility is expected ahead of derivatives’ expiry.
India’s April-June earnings season, through to the middle of August, has had a mixed start. Net income at six of 12 NSE Nifty 50 Index companies that have reported so far have either met or exceeded estimates, according to data compiled by Bloomberg. The Sensex Index has advanced more than 8 per cent this year, holding its place as Asia Pacific’s best performing stock market.
