A broker looks at his terminal at a stock brokerage firm in Mumbai. India’s main share index added 0.1% to 26,590.59 at the close yesterday, after changing direction at least eight times.

Bloomberg/Mumbai


Most Indian stocks advanced, with the benchmark ending the longest losing streak in almost six months, as metal producers and energy companies climbed.
Vedanta, the biggest copper and zinc producer, rebounded after declining about 10% over the last two days. Hindalco Industries, an aluminium producer, rose the most in three weeks. NTPC, the largest power generator, climbed to a three-month high, while Oil & Natural Gas Corp increased for a second day. Tata Motors slid the most since October 30. Larsen & Toubro, the most valuable engineering firm, completed its longest stretch of losses on record.
About nine shares climbed for every seven that fell on the broader S&P BSE 100 Index, which rose 0.2%. The S&P BSE Sensex added 0.1% to 26,590.59 at the close, after changing direction at least eight times. The benchmark gauge lost 3.3% in six days through Monday as results of some of the biggest companies disappointed investors. While 68% of Sensex companies that posted results for the September quarter have matched or beaten estimates, versus 60% in June, the gauge’s earnings have risen just 2% over the previous quarter, data compiled by Bloomberg show.
“This quarter will mark the bottom in terms of the degrowth we have seen in earnings,” Mahesh Patil, co-chief investment officer at Birla Sunlife Asset Management Co, which has $19bn in assets, said in an interview to Bloomberg TV India. “Growth should look better because of the base effect” from the quarter ending in December, he said. Patil said he’s bullish on companies linked to urban demand as they are likely to benefit more than manufacturers focused on rural consumption from the higher income growth and a fall in borrowing costs.
Investors are also awaiting the results of the Bihar state elections, due on Sunday. The polls are important for Prime Minister Narendra Modi’s efforts to control the upper house of parliament, where opposition parties have blocked key economic proposals including a nationwide sales tax. A win would give him momentum in about a dozen more state elections through 2017 that will determine control of the body.
“The market is looking forward to the Bihar election to see if the government is able to consolidate its position so that the pace of reforms accelerates,” Patil said.
Vedanta added 1.5%, paring this year’s loss to 54%. Hindalco increased 1.7% to its highest level since October 30. NTPC rallied 2.3%, the best performer on the Sensex. Mahindra & Mahindra, a tractor maker, increased 2%.
GAIL India, the biggest gas supplier, posted a second-quarter profit of Rs4.41bn, missing the Rs5.2bn estimate. The shares fell 1.1%. Earnings were announced after trading ended.
Tata Motors lost 1.5%, the most since October 30. Larsen & Toubro slid 1.1% in an 11th day of drop, the most since at least 1991. The stock is trading at its lowest level since May 2014. Amtek Auto jumped 14%, paring this year’s loss to 75%. The company is looking to sell 25% to 40% stakes in its units overseas, John Flintham, senior managing director at Amtek, said in an interview with Bloomberg TV India. Global funds sold a net Rs68mn of local stocks on November 2, paring this year’s inflow to $4.4bn.
The Sensex has fallen 3.3% this year and trades at 15.5 times projected 12-month earnings. The MSCI Emerging Markets Index is valued at a multiple of 11.3.
Meanwhile, the rupee weakened 0.1% to 65.6550 a dollar in Mumbai, prices from local banks compiled by Bloomberg show. The currency fell to 65.7125 earlier, the lowest since September 30. That’s after gaining as much as 0.3% intraday.