India stocks advance as US stimulus deal comes back in focus

Shares climbed across most markets in the region as investors remained hopeful that a US stimulus deal will be struck before the year-end holidays. The S&P BSE Sensex advanced 1.1% to 46,103.50 in Mumbai, while the NSE Nifty 50 Index climbed by a broadly similar magnitude.

Indian stocks rose, in line with peers in Asia, as investors remained optimistic about a US stimulus deal and steady foreign inflows continued.

Indian stocks rose, in line with peers in Asia, as investors remained optimistic about a US stimulus deal and steady foreign inflows continued (Bloomberg)

The S&P BSE Sensex advanced 1.1% to 46,103.50 in Mumbai, while the NSE Nifty 50 Index climbed by a broadly similar magnitude. The Sensex completed its fifth consecutive session of gain, its longest winning streak since mid-November, to close at a new high.

Shares climbed across most markets in the region as investors remained hopeful that a US stimulus deal will be struck before the year-end holidays. Foreign net equity purchases of nearly $18 billion so far this year as of Dec. 7 are already the most since 2013 as funds pour in, chasing returns. The relative strength index on both the Sensex and Nifty is over 70, a level that some traders read as overbought.

“The exuberance is likely to continue since the market remains flush with liquidity,” said Kranthi Bathini, a strategist at Mumbai-based WealthMills Securities Ltd. “The vaccine rollout and a possible US stimulus deal are driving positive sentiment across the world.”

The rupee weakened 0.1% to 73.5650 per US dollar, while the yield on 10-year government bonds fell two basis points to 5.92%.