The S&P BSE Sensex rose 1% to 29,655.84 points at the close in Mumbai, the biggest gain since March 14. The NSE Nifty 50 climbed 1.1%. HDFC Bank was the biggest boost to both gauges, rising 2.4% to a record. The lender increased its market share for most retail offerings, Antique Stock Broking Ltd said in a note, reiterating its buy rating.
Yesterday’s gains erased the Sensex’s declines for the month, with the benchmark gauge now little changed in April. It remains 1% below the April 5 record as foreign investors have pared positions. They have been net sellers for nine straight sessions through Thursday, according to the most recent data available. Global funds are poised to turn net short on local index futures for the first time since January while domestic investors just turned net long, or bullish. The contracts expire on the last Thursday of every month.
“Local investors are helping the index keep its head above water,” Paras Bothra, vice president at Ashika Stock Broking, said by phone. “Foreigners are bearish amid global concerns.”
Cement producers’ shares rallied after quarterly sales for India’s biggest manufacturers, ACC and Ultratech Cement, beat estimates.
ACC +7.5%, most since 2010, after reporting first-quarter revenue of Rs36.3bn, beating estimation of Rs31.5bn; Ultratech Cement gained to a record on 4Q net income of Rs6.88bn versus estimation of Rs6.65bn; India Cements +7%, Kesoram Industries +3.1%. Reliance Industries advanced ahead of its fourth-quarter earnings, scheduled for release; it has climbed 31% so far this year.
Meanwhile the rupee yesterday strengthened against the US dollar following gains in the global currencies and equity markets after the outcome of the first round of the French Presidential election.
The rupee closed at 64.44 a dollar, up 0.27% from its Friday’s close of 64.61. The rupee opened at 64.51 a dollar and touched a high of 64.41. Year-to-date, it gained 5.3%.
Global stock markets rallied after its favoured candidate, Emmanuel Macron, won the first round of the French presidential election. Macron will now face far-right leader Marine Le Pen in a May 7 runoff, with opinion polls on Sunday predicting an easy win for him in the final clash, Reuters reported.
Foreign institutional investors (FIIs) were net sellers for the ninth consecutive session and sold nearly $600mn in the local equity markets in this period. So far this year, they have bought $6.33bn and $7.14bn from local equity and debt markets, respectively.
The 10-year bond yield closed at 6.942% compared to its previous close of 6.924%. Bond yields and prices move in opposite directions.
Asian currencies were trading higher. South Korean won was up 0.38%, Singapore dollar 0.32%, Taiwan dollar 0.28%, Indonesian rupiah 0.09%, China Offshore 0.06%, Thai Baht 0.03%. However, Japanese yen was down 0.99%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 99.03, down 0.95% from its previous close of 99.977.
