Indian equities climbed for a sixth day on Friday, helping the benchmark gauge post a fresh record every day this week, as positive earnings news kept the bulls energized.
Indian equities climbed for a sixth day on Friday, helping the benchmark gauge post a fresh record every day this week, as positive earnings news kept the bulls energized. The S&P BSE Sensex jumped 1 percent to 37,336.85 at the close in Mumbai, capping the longest run of gains in more than three months. The count for the April-June results season turned positive after ITC Ltd. and Bharti Airtel Ltd. posted improved earnings after trading ended Thursday.
Both stocks were among the top gainers in the Sensex, while ICICI Bank rose for a third day before its results later in the day.
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The Sensex has rallied 5.4 percent in July, its best monthly performance since April, as the earnings confidence dampened the anxiety about the global trade conflicts and the Reserve Bank of India’s policy review on Wednesday. Net profit at 13 of the 21 NSE Nifty 50 Index firms that have reported have met or beaten estimates, data compiled by Bloomberg show.
“Earnings season moving along positive lines is generating higher buying interest,” said Deven Choksey, managing director at KR Choksey Shares & Securities Pvt. “Earnings would continue to get priority even amid central bank’s review next week. It is widely known that rates would have to rise slowly.”
The RBI, which raised rates in June for the first time since 2014, is set to review policy on Aug. 1. Eighteen out of 24 economists expect it to hike rates while the rest expect a hold, according to a Bloomberg survey of economists.
Among other Nifty 50 companies, Reliance Industries Ltd. and HCL Technologies Ltd. are also due to announce their results later today. The Sensex has advanced about 10 percent this year, holding its place as Asia Pacific’s best performing market.
Here’s the latest on what analysts are saying about Indian stocks:
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