Sensex holds gains at 7-month high as L&T, BHEL advance

June 8: Stocks held gains at a seven-month high as engineering companies and automakers countered declines in software exporters.

Larsen & Toubro and Bharat Heavy Electricals, the nation’s biggest capital goods companies, were the top perfor mers on the S&P BSE Sensex. Hero MotoCorp rallied to to its highest since December 2014, while ICICI Bank paced gains among its peers. Infosys slid for a third day.

The Sensex closed little changed in Mumbai, after swinging between gains and losses at least 12 times. The gauge rallied to its highest level since October on Tuesday after the central bank said it remains willing to cut rates as long as conditions allow, and as odds of a rate increase by the Federal Reserve this month decreased.

“The market’s run has been superb and hence we are seeing a consolidation at current levels,” RK Gupta, managing director of Taurus Asset Management, which has $590 million, said. “The markets are in a pause mode and waiting for the US Fed’s meeting next week and the monsoon’s progress.”

India’s monsoon, which accounts for four-fifths of the rainfall, reached the mainland n southern Kerala state on Wednesday.Thecountryiscountingonabove-normalrainfallthis year to help control food prices, boostfarmproductionandeasea drinking water shortage caused by back-to-back droughts.

Global investors are focused on central-bank and political events this month: the Fed announces its rate decision on June 15, a referendum on June 23 will determine Britain’s membership in the European Union and Spain’s general election is due three days after that. Traders have cut back their bets for a Fed rate increase, now pricing in almost no chance of a boost in June, with odds for July down to 18% from 53 a week ago.

Bharti Airtel rose 1% after report the government may cut spectrum usage changes. ICICI Bank rose 1.4%, adding to Tuesday’s 4.4% rally. Defence related stocks surged as much as 11% with India closing to become a member of the Missile Technology Control Regime (MTCR) that will pave the way for procurement of high-end military equipment and technologies.

The scrip of Walchandnagar Industries zoomed 10.86% and Reliance Defence and Engineering surged 10.32% on BSE.

Shares of Bharat Electronics soared 6.25% and BEML gained 3.98%. Agencies