Indian stocks head for best weekly streak since July ahead of GDP

Surging inflows from foreign investors have helped drive Indian equities higher even with the economy probably in its first technical recession since at least 1996.

India stocks headed for a fourth straight week of gains, the longest streak since July, as investors assess the pace of economic recovery.

The S&P BSE Sensex was little changed at 44,269.34 as of 9:53 a.m. in Mumbai, while the NSE Nifty 50 Index was also flat. Both indexes are trading close to record highs set Tuesday. (Bloomberg)

The S&P BSE Sensex was little changed at 44,269.34 as of 9:53 a.m. in Mumbai, while the NSE Nifty 50 Index was also flat. Both indexes are trading close to record highs set Tuesday.

Surging inflows from foreign investors have helped drive Indian equities higher even with the economy probably in its first technical recession since at least 1996. While signs of a recovery are emerging, a report after markets close today will show gross domestic product contracted 8.2% in the quarter through September, according to economists’ estimates.

“Our view is that portfolio inflows and local equities will hold up as investors’ appetite for risk increases amid a global economic recovery,” Shilan Shah, an economist at Capital Economics (Asia) Pte Ltd. wrote in a note.

Net foreign equity purchases of $14.5 billion so far this year through Nov. 25 are already the most since 2014, according to data compiled by Bloomberg. The addition of 12 Indian stocks to MSCI Inc.’s global standard indexes in its quarterly review, effective from Nov. 30, may also help boost inflows.

The yield on the benchmark 10-year government bond rose by two basis points to 5.89%, while the rupee strengthened 0.1% to 73.7988 per US dollar.