(Bloomberg) -- Indian equities rose for a second day as investor confidence increased on the outcome of national elections in May and growth in corporate earnings.

The S&P BSE Sensex climbed 0.3 percent to 38,334.61 as of 9:41 a.m. in Mumbai, while the NSE Nifty 50 Index added 0.2 percent. The indexes picked up gains from yesterday after a two-day decline. They have risen five straight weeks through Friday.

Foreign funds have pumped in more than $6 billion into Indian stocks this year on optimism of a revival in company earnings, continued low interest rates and the reinstatement of the incumbent national government for another five-year term. Still, some investors are assessing if the recent rally has been too fast, too soon or if there’s room for further gains.

Strategist View

• “Investors are assuming a significantly higher probability of the current government getting another term and this coupled with a catchup rally with EM rivals is boosting equities,” said Vivek Ranjan Misra, head of fundamental research at Karvy Stock Broking Ltd. in Hyderabad. “The fast-pace catch-up is probably over and volatility will remain higher ahead of the elections.”
• Poll outcome, company earnings and fears of a global recession will be the factors that will direct the markets from here, Misra said. He expects the Nifty to rise to 14,000 by the end of 2019.

The Numbers

Analyst Notes/Market-Related Stories

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