- Indexes of metal companies and bank stocks help lead gains
- Metals surge on euro-zone recovery prospects: TCG Group
By Santanu Chakraborty
India’s S&P BSE Sensex index climbed to a new record as Wipro Ltd. advanced the most in five months after its fourth-quarter profit topped analyst estimates.
The Sensex rose 0.6 percent to 30,115.59 as of 11:22 a.m. in Mumbai. Wipro added as much as 3.8 percent, fueled by earnings as well as a proposed bonus issue and possible buyback in July. Axis Bank Ltd. climbed 1.2 percent ahead of its earnings Wednesday. The S&P BSE India Metal Index advanced 1.2 percent, leading gains among the 13 sector gauges, with a boost from Tata Steel Ltd.
“The new Sensex high reflects the high weightage of metals and banks,” said Chakri Lokapriya, Mumbai-based managing director of the Indian arm of TCG Group, which manages $3 billion in assets. The outlook for metal stocks is improving on prospects for continued recovery in the euro zone and stronger U.S. growth, Lokapriya said, and investors expect a recovery in banks as bad loan provisions plateau.
The Sensex traded at 17.5 times estimated 12-month earnings, the most since November 2010. Seven months of net purchases by local funds have boosted the valuations of Indian stocks to their highest level in more than six years. The India VIX Index, a gauge of expected stock-price swings, rose 1.5 percent, rebounding from a record low.