Indian stocks head for third-straight record, led by energy

The Bombay Stock Exchange (BSE) logo is seen at the BSE building in Mumbai January 25, 2017. Driven by the energy sector, Indian shares head for third day of record-breaking highs. — Reuters pic
The Bombay Stock Exchange (BSE) logo is seen at the BSE building in Mumbai January 25, 2017. Driven by the energy sector, Indian shares head for third day of record-breaking highs. — Reuters pic

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MUMBAI, July 12 — India’s main stock indexes headed for a third day of record highs, paced by a rally in energy shares.

The benchmark S&P BSE Sensex gained 0.2 per cent and the NSE Nifty 50 Index rose 0.3 per cent as of 10.40am local time. The Nifty reached an intraday record of 9,830 yesterday “on short covering” and is headed for 10,000 after it broke its one-month resistance level of 9,700, Edelweiss Broking Ltd said in an investor note.

Eleven of the 13 sector indexes compiled by BSE Ltd advanced, paced by the S&P BSE India Oil & Gas Index’s 1.3 percent rise. Oil extended gains above US$45 (RM193) a barrel as US industry data showed crude and gasoline stockpiles declined. The S&P BSE MidCap Index added 0.5 per cent and the S&P BSE SmallCap Index gained 0.2 per cent.

The Sensex now trades at a nearly 10-year high valuation of 18.4 times its estimated 12-month earnings amid the best rally among major Asian markets so far this year. “If earnings start growing at 15 to 20 per cent, we can see these valuations sustaining,” Sampath Reddy, chief investment officer at Bajaj Allianz Life Insurance Co., said in a recent interview.

Summary

Ajanta Pharma Ltd drops 1.8 per cent after it said founder Ganga. Exports sold a 3.1 per cent stake Biocon Ltd climbs 6.2 per cent after positive US FDA assessment of a cancer biosimilar PNC Infratech Ltd +2 per cent, KNR Constructions Ltd +1.3 per cent; rated new buys at Nomura. — Bloomberg

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