Bloomberg/Mumbai

Indian stocks advanced to a record for a fourth day, with the benchmark index completing its biggest weekly rally in eight months, as the European Central Bank expanded its stimulus programme.
Tata Power advanced the most on the S&P BSE Sensex, while Bharti Airtel, the largest mobile-phone operator, climbed to a two-

month high. Tata Motors, owner of Jaguar Land Rover, climbed to an all-time high. Engineering company Larsen & Toubro increased to its highest level since July. Sun Pharmaceutical Industries advanced for a seventh day.
The Sensex rallied 0.9% to 29,278.84 at the close, taking the week’s increase to 4.1%, the most since June.
“Much of what we are seeing is on expectation of what central banks would be doing going forward,” Atif Latif, a director of trading at Guardian Stockbrokers in London, told Bloomberg TV India yesterday. “Risk appetite is moving up and things are looking positive.”
Foreigners bought a net $346mn of local shares on January 21, the most since December 8, according to data compiled by Bloomberg.

That took this year’s purchases to $782.5mn, the most among eight Asian markets tracked by Bloomberg.Tata Power, the biggest generator outside state control, surged 6.7%, the most since May 19. Bharti soared 3.8% to its highest level since December 2.

Housing Development Finance Corp, the biggest mortgage lender, added 0.8% to a record. Tata Motors jumped 3.9%. Larsen increased 2.9%. Sun Pharmaceutical rose to a record.
The Sensex has climbed 6.5% this month, the best performer in the world in dollar terms, after the central bank lowered its main interest rate for the first time in 20 months on January 15, and the International Monetary Fund said this week that India will be the world’s fastest-growing major economy in the year ending March 2017.
The gauge’s 50-day historical volatility index rose to the highest since July. Its 14-day relative strength index, which tracks  how rapidly prices rose or fell during the specified period, was at 72.5. Some investors see readings of more than 70 as a signal to sell.The market is closed on January 26 for a public holiday.
The partially convertible rupee ended stronger at 61.42/43 per dollar versus its previous close of 61.6950/7050 on strong foreign dollar inflows, stocks. Dollar demand by state-run banks, likely for oil companies, and central bank pulled the rupee off a 2-1/2 month high hit in early trade.


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