India’s benchmark stock-index rose for a seventh day, the longest gaining streak in four months, paced by industrials and automobile companies.
Larsen & Toubro Ltd. (LT), the biggest engineering company, jumped to a one-month high. Maruti Suzuki India Ltd. (MSIL) climbed to a record as CLSA Asia-Pacific Markets named the company as its top automaker pick for 2015. Tata Steel Ltd. (TATA) rose for a fourth day, sending a gauge of metalmakers to a four-week high.
The S&P BSE Sensex (SENSEX) increased 0.6 percent to 28,047.54 at 10:44 a.m. in Mumbai, headed for the longest run of gains since September. The gauge climbed 30 percent last year, the biggest annual advance since 2009 and the best performance among the world’s 20 biggest markets after China. Company earnings may climb as much as 19 percent in the year through March 2016, aided by lower commodity prices, fueling further gains this year, according to HSBC Asset Management (India) Pvt.
“We expect pretty significant returns from equities in 2015,” Tushar Pradhan, who manages about $ 1 billion as the chief investment officer at HSBC Asset, told Bloomberg TV India today. “We are constructive on equities, no matter what happens to the dark clouds of external environment.”
Larsen & Toubro jumped 2.1 percent to the highest level since Dec. 9. Bharat Heavy Electricals Ltd. (BHEL), the biggest power-equipment maker, extended last week’s 9.4 percent advance.
Maruti Suzuki jumped 2.5 percent. Truckmaker Ashok Leyland Ltd. (AL) surged 6.5 percent to a record 56.85 rupees after sales in December increased 48 percent, the company said in a statement on Jan. 3. Tata Steel climbed to a three-week high.
The Sensex is valued at 15.3 times projected 12-month profits, versus the MSCI Emerging Markets Index’s multiple of 11 times. The CNX Nifty Index (NIFTY) rose 0.3 percent to 8,418.45.
Foreigners bought a net $ 4.4 million of local shares on Jan. 1, adding to $ 16 billion of stock purchases last year.
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