India shares jump to record on optimism over monsoon, earnings
MUMBAI (NewsRise) -- Indian shares rose to a record on Tuesday, extending gains for the second straight day, as expectations of good monsoon and upbeat company earnings drove demand for frontline blue chip stocks.
The benchmark BSE Sensex index gained 0.9%, or 260.48 points, to 30,582.60, while the broader NSE Nifty50 index rose 0.7%, or 66.85 points, to 9,512.25.
"The market has crossed another hurdle with a new high, given good corporate results & expectation of early arrival of monsoon," said Vinod Nair, head of research at Geojit Financial Services. "That has shredded off the worries over premium valuation of stocks."
Foreign investors have net purchased $419.32 million worth local stocks this month until Monday, against a net sale of $344.79 million in April.
Twenty of the 30 Sensex constituents ended higher, while overall advancing issues beat declining ones 1,435 to 1,344 and 181 stocks were unchanged.
Monsoon-linked sectors such as consumer goods and automobile stocks outperformed Tuesday. The BSE gauge of fast moving consumer goods ended up 1%, while the automobile index advanced 1.1% amid bets that normal rains in coming months could lift farm incomes, driving rural spending.
India's weather office said Tuesday that the annual southwest monsoon is likely to hit the southern Kerala state on May 30. This forecast follows a media report last week that quoted the chief of India Meteorological Department as saying that the country will likely receive above-average monsoon rainfall this year as concern over the El Nino weather condition has eased in the past few weeks.
ITC, which has among the biggest weightage in the Sensex, led among the gainers, advancing 2.2% to 283.45 rupees. Car maker Maruti Suzuki India rose 2.1% to 6,952.60 rupees and consumer goods maker Hindustan Unilever ended 1.6% higher at 998.15 rupees.
State-run banks were the other key gainers after Punjab National Bank swung to a 2.62 billion-rupees net profit ($40.9 million) in the quarter ended Mar. 31 from a 53.67 billion-loss in the year earlier period. The shares ended 4.6% higher at 174.55 rupees.
State Bank of India gained 2.2% to 307 rupees, while smaller rival Bank of Baroda closed 2.6% higher at 193.55 rupees. Both the lenders are due to report quarterly earnings later this week.
Tata Consultancy Services, India's largest software exporter, gained 2.7% to close at 2,427.25 rupees. The company said late Monday its scheduled share buyback program will commence from May 18.
Indian Oil Corp. gained 1.1% to 446.45 rupees. The state-run company will be included in the U.S. investment service provider MSCI's Global Standard Index from Jun. 1.
Tata Steel rose 0.3% to 457 rupees ahead of its fourth-quarter earnings due later in the day.
Elsewhere in Asia, China's Shanghai Composite index gained 0.7% and Japan's Nikkei 225 index rose 0.3%. Hong Kong's Hang Seng index closed down 0.1%, while South Korea's Kospi index rose 0.2%.
--Dhanya Ann Thoppil