 "Indian markets at 6-week high, Wipro net tops estimates")
Wipro rallied the most in 18 months. Reliance Industries, owner of the world's largest refining complex, rose for a third day. Axis Bank jumped to a record. Hindustan Unilever tumbled the most since January 2011, after reporting the slowest sales growth in three quarters.
The benchmark BSE Sensex gained 0.5 per cent to 28,262.01, the highest close since December 5. European Central Bank (ECB) President Mario Draghi may announce a ^550 billion ($635 billion) bond-purchase programme on January 22, according to a Bloomberg survey. The Sensex last week had its biggest weekly jump in more than two months, after Reserve Bank of India Governor Raghuram Rajan cut borrowing costs in an unscheduled move.
'Markets have stabilised globally, and we should have the ECB quantitative' this week, Ajay Srivastava, managing director of Dimensions Consulting, told Bloomberg TV India on Monday.
"A benign international environment and a very aggressive local environment is a potent combination. We should get at least a one to two per cent rate cut in 2015."
Wipro jumped 5.3 per cent, the most since July 2013. The company reported quarterly net income of Rs 2,190 crore ($355 million) after the market had closed on January 16. That exceeded the Rs 2,160 crore estimate of 35 analysts compiled by Bloomberg.
Reliance added 1.1 per cent to Rs 879.65, erasing an intra-day loss of 1.3 per cent. The company reported its first profit decline in nine quarters after trading ended on January 16, as oil's rout over the past six months drove down the value of stockpiles and pared its refining margin.
Axis Bank increased 2.8 per cent to an all-time high. The stock soared 93 per cent last year and was top performer on the Sensex. Third-quarter profit rose 18 per cent to Rs 1,900 crore, beating the Rs 1,870 crore estimated by analysts, the company reported January 15.
Five of six Sensex members that have so far announced results for the quarter ended December 31 have beaten or matched analyst estimates. Profits at 67 per cent of the 30 Sensex companies beat or matched estimates in the September quarter, versus 46 per cent in the three months ended June and 60 per cent in March, data compiled by Bloomberg show.
"We are not expecting too much of a great earnings season this quarter," Prakash Diwan, a director at Altamount Capital Management, told Bloomberg TV India on Monday. "At the same time, stocks are not getting punished for weak earnings."
Unilever, Hindalco
Hindustan Unilever plunged 5.2 per cent to Rs 892.55. The drop pared this year's gains to 17 per cent, still the best among Sensex stocks. Sales fell 7.7 per cent to Rs 7,580 crore. While net income rose 18 per cent to Rs 1,250 crore from a year ago, it included a Rs 397 crore gain from sale of properties.
Hindalco Industries increased 1.2 per cent, ending a three-day, 8.7 per cent decline. Bharti Airtel, the country's largest mobile phone operator, gained 2.2 per cent.
The Sensex is valued at 15.6 times projected 12-monthc earnings, compared with the MSCI Emerging Markets Index's multiple of 10.6. Global investors bought a net $197 million of local shares on January 15.
Nomura sets year-end Sensex target at 33,500
Nomura has set a Sensex target of 33,500 for the end of this year. The target, one of the highest by a foreign brokerage house, implies an 18.5 per cent upside from current levels. Falling borrowing costs and an improvement in growth were among the reasons for a positive stance on India, Nomura said in an investor note. Axis Bank, HCL Tech, Maruti Suzuki, National Buildings Construction and Union Bank of India are the brokerage house's top five picks for this year.