(Bloomberg) -- India’s benchmark index advanced, set for a second consecutive record-high close, as the earnings season continued to woo investors.
The S&P BSE Sensex Index gained 0.2% to 40,562.12 as of 9:58 a.m. in Mumbai, rising for a ninth day in 10. The NSE Nifty 50 Index also advanced 0.2%. The Sensex index’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-one out of 34 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.
Strategist View
“Most of the Nifty 50 companies’ results were better than or matching expectations, which has also increased optimism in the investor community, thus minimizing downside for the market,” Shrikant Chouhan, 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.”
The Numbers
- Fourteen of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of real estate companies after the government announced a 250 billion-rupee ($3.5 billion) fund to salvage stalled residential projects.
- IndusInd Bank Ltd. rose the most on the benchmark index, while Tata Steel Ltd. dropped after reporting its earnings.
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