India stocks advanced towards new peaks as sentiment was boosted by a positive start to the quarterly earnings season and the commencement of vaccinations in the nation this week.
The S&P BSE Sensex climbed 0.5% to 49,012.73 as of 10:21 am in Mumbai, while the NSE Nifty 50 Index advanced 0.4%. Both gauges, heading toward fresh record highs, were boosted by technology companies after Tata Consultancy Services Ltd. posted earnings that beat expectations.
“December quarter results look promising and have been boosted by a recovery in the economy,” said Deven Choksey, a strategist at KRChoksey Investment Managers Pvt. in Mumbai, “The start of the vaccination drive is positive for sentiment and is continuing
India’s stocks have benefited from foreign investors piling in amid signs of recovery in the economy, even as it heads for its worst annual contraction since the 1950s. As the world’s top hot spot for coronavirus infections after the US, deployment of vaccinations from the end of this week is seen speeding a revival in growth.
Tata Consultancy climbed as much as 3.5% to a record high after Asia’s largest software outsourcing provider posted net income and sales that beat analysts’ estimates and forecast double digit growth next financial year. Infosys Ltd. and Wipro Ltd., both due to report results on Wednesday, each climbed more than 2%.
The yield on the benchmark 10-year government bond increased by five basis points to 5.92%, while the rupee weakened 0.3% to 73.4750 per US dollar.
Fifteen of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of IT companies and fifteen Sensex shares rise while 15 fall.
While Infosys Ltd. contributed most to the advance and had the steepest jump, climbing 3.6%; Reliance Industries Ltd. was the biggest drag and slipped 0.5%.