Sensex climbs to record a second day

mumbai — Indian shares advanced a second day, with the key indexes extending record highs, paced by a rally in software exporters.

The benchmark S&P BSE Sensex added 0.1 per cent to close at 31,747.09 at the 3.30pm close in Mumbai, while the NSE Nifty 50 Index gained 0.2 per cent. The Sensex closed at an alltime high level for the third day in four trading sessions.

A relatively fast-growing economy, policy reforms, strengthening currency and an improving earnings outlook have boosted Indian shares this year, with overseas and local funds buying more than $14 billion worth of equities.

That, “combined with a strong domestic demand environment and impressive progress on the structural reforms front, has kept the investor sentiments intact, despite the recent run” in stocks, HSBC Securities & Capital Markets (India) Pvt said.

Six of the 13 sector gauges compiled by BSE advanced, led by the S&P BSE Information Technology Index’s 0.9 per cent gain. Infosys and TCS provided the biggest boosts to the industry gauge before earnings reports due later this week. The index is still the worst performer in 2017 after the health-care measure.

“It is quite plausible that earnings growth compounds annually at 20 per cent in the coming five years, led by infrastructure spending, consumption and exports,” Morgan Stanley said. — Bloomberg