India Stocks Track Asia Peers Higher to Snap Two Days of Losses

(Bloomberg) -- India stocks rose, tracking regional peers higher, after two days of declines dragged indexes back from record high levels.

The S&P BSE Sensex climbed climbed 0.8% to 48,950.77 as of 10:03 a.m. in Mumbai, while the NSE Nifty 50 index advanced by the same magnitude. Most equity markets across Asia rose, with the MSCI Asia Pacific Index adding 1.3%, on course for a new peak.

With India’s key stock gauges having slipped from records, volatility has touched levels last seen in early November amid the quarterly earnings season and ahead of the federal government unveiling its annual spending plan.

”Volatility is up because of rotational trade and in anticipation of the budget,” said Sanjeev Hota, head of research at Sharekhan Ltd. in Mumbai. “The hopes are very high but nobody knows how it will pan out and the market level is quite elevated.”

India’s federal budget presentation is due on February 1. All five of the Nifty 50 companies that have reported results for the quarter ended December have beaten analyst estimates. Bajaj Finance Ltd. is due to report tomorrow.

The yield on the benchmark 10-year government bond was little changed at 5.9% while the rupee appreciated 0.2% to 73.1662 per U.S. dollar.

The Numbers

• All 19 sector sub-indexes compiled by BSE Ltd. gained, led by a gauge of real estate companies
• Twenty-eight Sensex stocks rose while two dropped
  • Reliance Industries Ltd. contributed most to the index advance; Oil & Natural Gas Corp.’s rose the most, adding 2%, after a report that it’s asked Exxon Mobil to venture in some exploration blocks

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