(Bloomberg) -- Indian equities advanced for a fourth day in five amid continued optimism that Prime Minster Narendra Modi will adopt more policies to support slowing growth in Asia’s third-biggest economy.

The benchmark S&P BSE Sensex rose 0.4% to 39,676.14 as of 9:59 a.m. in Mumbai, while the NSE Nifty 50 Index also gained 0.4%. Both measures retreated in the previous session from record closes on Tuesday. Arresting an economic slowdown and nursing the nation’s financial sector back to health will be the immediate priorities for the next administration, due to take office today.

Economists estimate a report Friday will show the pace of economic growth in the three months through March was the slowest in almost two years, while the central bank meets June 6 to decide on monetary policy. Stepping into his second term, Modi may initially focus on infrastructure development and spending on farmers to buoy the economy.

Mixed trade in Asian equities amid heightened trade tensions and expiry of India’s monthly derivative contracts later today may keep trading volatile.

Strategist View

• “We expect markets to trade with a positive bias before the policy meeting as the expectation of a rate cut is being priced in,” said Sameer Kalra, president of Mumbai-based advisory Target Investing.

The Numbers

• Twelve of the 19 sector indexes compiled by BSE Ltd. advanced, led by a gauge of telecom stocks.
• Twenty-three of the 31 Sensex members and 33 of the 50 Nifty companies rose.
• NTPC Ltd. and Bharti Airtel Ltd. were the top gainers on the benchmark. Mahindra & Mahindra Ltd. fell the most as the company said weak rural demand will weigh on volume growth after quarterly net income missed the consensus analyst estimate.
• Of the 48 Nifty companies that have announced their results so far, 29 have either met or exceeded analyst estimates.

Analyst Notes/Market-Related Stories

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