Indian Equities Advance Ahead of Holidays as Crude Oil Retreats - EcoFinBiz Blog

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Indian Equities Advance Ahead of Holidays as Crude Oil Retreats

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(Bloomberg) -- Indian shares rose as crude oil resumed its decline, reducing the cost of the nation’s biggest import, and as earnings reports of top 50 companies mostly matched or topped analyst estimates.

The benchmark S&P BSE Sensex climbed 0.4 percent to 35,083.03 as of 9:55 a.m. in Mumbai. Tata Motors Ltd. paced the rally among Sensex members, while Vedanta Ltd. dropped the most. The NSE Nifty 50 Index added 0.6 percent. Investors will make ceremonial purchases in a one-hour trading session on Wednesday to mark Diwali, the festival of lights. Markets will be fully closed on Thursday.

The Sensex gains come after the gauge dropped nearly 11 percent in the past two months, the worst such back-to-back decline since February 2016, as Brent crude rose to its highest level in four years -- clouding outlook on economic growth and corporate profits. Also, a series of repayment defaults by Infrastructure Leasing & Financial Services Ltd. sparked concerns of a debt crisis, triggering a cash crunch.

“Oil isn’t rising as much as it was envisaged, in fact dropping below $75 now is a big positive for global markets and particularly India,” said Sudip Bandyopadhyay, group chairman of Inditrade Capital Ltd. in Mumbai. “Even as liquidity issues still persist, there are many interesting opportunities after the recent drop in stock prices,” he said.

Brent futures fell 0.5 percent in early trade Tuesday, set for a sixth day of decline in seven, and down more than 15 percent from its 2018 high on Oct. 3. Of the 43 Nifty 50 companies that have reported earnings so far, 25 have either matched or beaten analyst estimates.

Sixteen of the 19 sector indexes compiled by BSE Ltd. climbed, paced by a gauge of technology stocks, while a measure of metal shares led declines.

To contact the reporter on this story: Ameya Karve in Mumbai at akarve@bloomberg.net

To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Margo Towie, Tim Smith

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