India’s Stocks Climb to Record on Growth Outlook, Fund Inflows
By Rajhkumar K Shaaw and Thomas Kutty Abraham
Nov. 5 (Bloomberg) -- India’s stocks climbed to a record close for a second straight day in a shortened trading session, as investors increased their holdings amid expectations the nation’s economic growth will boost corporate earnings.
Tata Motors Ltd., the best performer on the benchmark index this year, gained 0.9 percent to 1,244.95 rupees, its highest close since at least January 1991. State Bank of India, the nation’s biggest lender, climbed 1.7 percent to 3,489.95 rupees, its highest close in at least 19 years. Hindalco Industries Ltd., the biggest aluminum producer, gained 2.7 percent to 232.45 rupees.
Coal India Ltd., the world’s No. 1 producer of the fuel, rose 2.1 percent to 349.85 rupees, extending gains after climbing 40 percent in its trading debut yesterday in India’s biggest initial share sale.
“The bulls have got a boost of vitamins,” said Avinash Gupta, an analyst at Bonanza Portfolio Ltd., a New Delhi-based brokerage. “The mood is very positive after Coal India’s super listing yesterday.”
The Bombay Stock Exchange’s Sensitive Index, or Sensex, gained 111.39, or 0.5 percent, to 21,004.96 in Mumbai, surpassing yesterday’s record close of 20,893.57. The gauge remains below the intraday record of 21,206.77 set on Jan. 10, 2008. The S&P CNX Nifty Index on the National Stock Exchange rose 0.5 percent to a record 6,312.45 at close. The BSE 200 Index increased 0.5 percent to 2,660.38.
Token Purchases
Investors and traders made token stock purchases during a truncated one-hour trading session until 7 p.m., marking Diwali, the festival of light and the start of the Hindu new year. Participants prayed to Lakshmi, the Hindu goddess of wealth, lit lamps and made offerings for a prosperous year. Determined by the new moon, the so-called Muhurat trading held every year on Diwali is considered the most auspicious time to start investments. Hindus make up 80.5 percent of the nation’s population.
This year’s 20.3 percent rally makes the Sensex the best performer among the world’s 10 biggest stock markets. Foreign fund inflows have surged 80 percent, making the gauge the most expensive in Asia and among the BRIC markets that also include Brazil, Russia and China.
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