Indian (SENSEX) stocks rose, with the benchmark gauge poised to rally for a second week, on expectation state election results this weekend will confirm gains for the nation’s main opposition party.
Power equipment manufacturer Bharat Heavy Electricals Ltd. (BHEL) climbed to a four-month high, helping a gauge of capital goods makers rally to the highest level since May. Oil & Natural Gas Corp. (ONGC) surged 2.2 percent, sending a measure of energy stocks to a one-month high. Hero MotoCorp Ltd. added 2.7 percent after CLSA Asia Pacific Markets raised the stock to outperform.
The S&P BSE Sensex climbed 0.2 percent to 20,993.41 at 10:21 a.m. in Mumbai, extending a weekly gain to 1 percent. The Sensex and rupee rallied yesterday as an exit poll showed the opposition Bharatiya Janata Party, which picked Narendra Modi as its choice for prime minister, was poised to win four of five state elections to give it momentum ahead of national voting next year. Modi, the chief minister of Gujarat state since 2001, has overseen annual economic growth of 10 percent on average.
Victories by the BJP in four of five states that held elections over the past month would send the Sensex to almost 22,200 from its closing level of 20,957.81 yesterday, according to the average of 10 estimates compiled by Bloomberg.
The CNX Nifty (NIFTY) Index on the National Stock Exchange of India Ltd. rose 0.3 percent to 6,262.10.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at email@example.com
To contact the editor responsible for this story: Michael Patterson at firstname.lastname@example.org