Eksplorasi.id – Indian stocks rose for a sixth day, taking the benchmark index closer to a bull market, as energy companies and industrials climbed on optimism an improving economy will bolster corporate earnings.
Oil & Natural Gas Corp., the largest state-run explorer, rallied to a six-month high, while Adani Ports & Special Economic Zone Ltd. was the best performer on the S&P BSE Sensex.
Tata Motors Ltd., owner of Jaguar Land Rover, climbed to more than a one-week high. State Bank of India, the nation’s biggest, rallied to a six-month high, while ICICI Bank Ltd. extended last week’s 4.1 percent climb.
The Sensex added 0.5 percent to 27,278.76, its highest level since Oct. 26, coming within 1 percent of entering a bull market. Foreigners bought $771 million in stocks in June, a fourth month of inflow, as earnings recovered after falling in four of the previous five quarters and the government took steps to boost growth.
A rebound in global equities amid speculation that central banks will take steps to ease the economic fallout from the shock U.K. decision to leave the European Union, has bolstered sentiment, according to Angel Broking Ltd.
“If corporate earnings show signs of sustaining revival in this quarter, and if the GST bill is cleared by Parliament, investor sentiments will remain positive,” Mayuresh Joshi, head of institutional sales at Mumbai-based Angel, said in an interview with Bloomberg TV India on Monday. “Markets have brushed off Brexit fears and there are no expectations of the U.S. Fed raising rates in July. That’s rubbing off on our markets.”
Market Rebound
The Sensex has climbed 19 percent from a low in February, approaching the 20 percent threshold for a bull market. The rally has been powered by forecasts for above-normal rainfall after back-to-back droughts and data showing the country expanding faster than all other major economies.
Last month, the gauge completed its best quarter since Prime Minister Narendra Modi’s election victory in May 2014, as the government eased rules on foreign direct investment, approved a new mining policy and said it would seek to pass a constitutional amendment authorizing the goods-and-services tax in the parliament session starting July 18.
ONGC surged 3.1 percent, extending last week’s 7.5 percent rally. Adani Ports jumped 4.4 percent to its highest level since May 3. Tata Motors added 2.5 percent. State Bank of India increased 1.6 percent to its highest level since Jan. 1. ICICI Bank soared 3.3 percent to a three-week high.
