Indian Stocks Fluctuate After Five-Day Rally to Record Highs

(Bloomberg) -- India stocks drifted between gains and losses following a five-day rally, as the nation’s daily count of fresh reported coronavirus cases dropped to a six-month low.

The S&P BSE Sensex was down 0.1% at 47,576.19 as of 10:13 a.m. in Mumbai after rising as much as 0.4% and falling as much as 0.3%. The NSE Nifty 50 Index also slipped 0.1%. Both indexes set record highs in each of the past three trading sessions.

The rupee strengthened 0.2% to 73.3262 against the dollar

On Tuesday, India posted its lowest number of new virus cases since June, fueling optimism about the pace at which the economy may recover next year. Stocks have also been buoyed recently by foreign investors, who have poured nearly $23 billion into the market this year, the most since 2012.

“The uptrend in the market should continue next year,” said Sanjeev Hota, head of research at Sharekhan Ltd. in Mumbai, even though valuations are getting high. “The earnings recovery cycle will start next year and there are some tailwinds from the macro side.”

The Numbers

• Thirteen of 19 sector sub-indexes compiled by BSE Ltd. fell, with a gauge of metal companies falling the most
• Seventeen shares on the Sensex index rose while 13 fell
  • Reliance Industries Ltd. contributed most to the index’s decline, dropping 0.5%
  • Bajaj Finance Ltd. provided the biggest support, advancing 1.1%

Related Stories

©2020 Bloomberg L.P.