Sensex soars 300 points, set for best quarter in 2018

Indian equities snapped a two-day drop, with key indices headed for their best quarterly performance this year, as investors expect a revival in economic growth and rebounding corporate profits to shield shares from the impact of global trade frictions and rising oil prices.

The benchmark BSE Sensex rose 0.93% or 324.99 points to 35,362.63 as of 1.40 pm, up more than 6.8% in April to June period after a more than 3% decline in the previous quarter. Yes Bank Ltd. rose 3.20%, the steepest among BSE Sensex members.

The NSE Nifty too was up 0.91% or 96.55 points to 10,685.65 at 1.40 pm.

Investors bet that India will see strong economic growth and robust company earnings in the second half of the financial year that started April 1 as domestic consumption will offset impacts of higher crude prices, a weaker currency and a strain on the nation’s trade and fiscal accounts. “Markets are leading indicators of economy and they will start pricing the up move earlier,” said Ajay Bodke, chief executive officer at Mumbai-based Prabhudas Lilladher Pvt. He sees the NSE Nifty 50 Index trading in 10,300 to 11,000 range.

All the 19 sector gauges compiled by BSE Ltd. rallied, paced by the S&P BSE Metal Index’s 1.9% advance. The Nifty gauge climbed 0.5% to 10,637.60, stretching its gain this quarter to 5.3%. The NSE Volatility Index fell 4.5%, set for its first drop this week.