Anz disappoints market with trading update
By Mark Hosenball
CHENNAI: Indian equities rose sharply on Friday after trading in their biggest one-day rally since August, thanks to an encouraging economic report and news that China is expected to announce fresh measures.
Investors rushed to buy after India’s economy ministry said growth improved to a seasonally adjusted 3.8 per cent in the three months to July, beating a forecast for 2.5 per cent.
The index in early trading in Mumbai, where it has a close market value of about $15 billion, was up 5.4 per cent, on track for its biggest monthly rally since August. It was up 0.2 per cent from Friday’s close before it opened higher.
Analysts expect the government data next month to provide even stronger support to India’s economic growth. “Our forecast is for a recovery in the economy, so as to drive forward the fiscal stimulus,” said Pratap Sridhar, chief economic adviser at Fitch Ratings in New York.
“Now they could turn around and announce tax cuts in the second quarter but also some of their fiscal measures, like capital gains, they say could boost growth at least another 3 per cent,” Mr Sridhar said.
The Sensex, India’s benchmark index of the world’s stocks, ended the day at the highest level since January after finishing up nearly 30 per cent last week.
Prime Minister Narendra Modi’s government, though under-performing in the wake of a sharp plunge in global markets following last year’s ruling BJP government’s demonetisation exercise, has kept investors onside with promises of a boost in services tax.
The Reserve Bank of India will soon print Rs500 and Rs1,000 notes in an effort to tackle hoarding that has made it impossible to cash out of excess assets, it has said.
Indian equities started off the day by trading above the 52-week average of 14,700 in New Delhi, rising 1 per cent to just under $19.28 in New York. They fell 2.6 per cent in Mumbai.
The index is up slightly for the year, according to the Indian Real Estate Board (IRD). The index climbe바카라d 2.4 per cent in New Delhi.
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