Indian stocks climbed the most in a month after Wipro (WPRO) Ltd.’s second-quarter earnings beat analysts’ forecasts and better-than-estimated U.S. jobs and manufacturing data boosted the outlook for exporters.
The BSE India Sensitive Index (SENSEX), or Sensex, rose 1 percent to
18,746.12, according to preliminary closing prices. The gauge gained 0.7 percent this week, the most since a five-day period ended Oct. 5. Wipro, the third-biggest software exporter which gets half of its sales from the U.S., rose for the fifth day, taking the week’s rally to 8.6 percent. Mahindra & Mahindra Ltd. (MM), the largest tractor producer, surged to a record.
Earnings for just three of 19 Sensex companies have lagged behind analysts’ estimates in the three months ended September, compared with 40 percent in the June quarter, data compiled by Bloomberg show. Asian equities increased the most in two weeks after fewer Americans filed for jobless claims last week than economists forecast and companies expanded payrolls in October by the most in eight months.
“This earnings season has been better than what the market has been expecting,” Manishi Raychaudhuri, head of Indian equity research at BNP Paribas Securities (Asia) Ltd., told Bloomberg TV India today. “Earnings estimates in India have declined 1 percent to 2 percent in 2012, compared with 8 percent to 15 percent in other emerging markets in Asia. It’s this stability that investors are playing.”
The Sensex has increased 21 percent this year, driven by overseas fund purchases and government policy reforms announced since mid-September to revive economic growth from the weakest level since 2009. Foreign funds bought a net $18.1 billion of local shares this year, the most among 10 Asian markets tracked by Bloomberg, excluding China.
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