India’s benchmark stock index rose for a second day yesterday as investors judged recent declines in some stocks as overdone relative to their earnings outlook.
Housing Development Finance Corp, the country’s largest mortgage lender, climbed for the first day in five, rising 3.8%. Hindalco Industries Ltd, the largest aluminum producer, advanced 2.9%, after metal prices increased.
“Valuations in some stocks look attractive after the recent correction,” said Deven Choksey, chief executive officer at KR Choksey Shares & Securities Pvt, which manages about $125mn in assets. “Stock selection is important.”
The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 182.89, or 0.9%, to 19,691.78 at the 3.30pm close in Mumbai. Companies on the gauge are valued at an average 18.7 times estimated earnings, compared with a recent peak of 20.1 times on November 5.
The S&P CNX Nifty Index on the National Stock Exchange also gained 0.9% to 5,907.65. The BSE 200 Index increased 1.1% to 2,450.47.
Housing Development rallied 3.8% to Rs693.75, after losing 5.1% in the previous four trading days amid concern higher borrowing costs may trim profit margins. DLF Ltd, the biggest real estate developer, climbed 3.3% to Rs291.25, rising for the first session in five.
Hindalco advanced 2.9% to Rs221.6. Aluminum rose 1.6% in London, pacing gains among metal prices, after China refrained from raising borrowing costs, boosting speculation demand in the world’s fastest-growing major economy can be sustained. Tata Steel Ltd, India’s biggest producer of the alloy, gained 1.9% to Rs630.65.
The rupee weakened for the third time in four days on speculation the nation’s refiners will step up dollar purchases to pay for costlier crude-oil imports.
The currency slid 0.2% to 45.1375 per dollar as of the 5pm close in Mumbai, according to data compiled by Bloomberg. The currency is still up 1.6% this month and touched 44.39 on December 7, the strongest level since November 12.
豫公网安备41010502003434号