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Indian stocks gain as rupee cuts losses

The Sensex added 0.8 per cent at the close, reversing an intraday loss of 1.2 per cent

Indian stocks gain as rupee cuts losses
Bloomberg Mumbai
Last Updated : Feb 17 2016 | 10:21 PM IST
Indian stocks gained in late trade, led by health-care companies, as the rupee rebounded from near a record low and European equities advanced.

Sun Pharmaceutical Industries Ltd and Dr Reddy's Laboratories Ltd were among the best performers on the S&P BSE Sensex. Adani Ports & Special Economic Zone Ltd posted its biggest three-day advance in seven years. Reliance Industries Ltd, owner of the largest refining complex, climbed to a one-week high.

The Sensex added 0.8 per cent at the close, reversing an intraday loss of 1.2 per cent. The rupee strengthened after falling within 0.2 per cent of a record low. The currency has been Asia's worst-performing currency over the past month as global funds pulled $2.4 billion from local stocks amid an emerging-markets selloff. The Stoxx Europe 600 Index gained two per cent in London, while futures pointed to advance in US shares.

"In the past decade, Indian stock markets have bottomed out after the rupee," Mehraboon Irani, head of private-client group at Nirmal Bang Securities Ltd, said in an interview with Bloomberg TV India on Wednesday. "The stock market is somewhere near the bottom but let's wait for one more crack in the rupee."

The rupee dropped 0.1 per cent to 68.4675 per dollar after coming within 0.2 per cent of an unprecedented 68.845 reached in August 2013. A drop in the currency to 69.7 followed by a period of stability will mark "the bottom for the stock market," Irani said.

Foreigners withdrew $1.7 billion from local shares in January after buying $3.3 billion of stocks last year, the smallest amount since 2011. The Sensex has plunged 10.5 per cent this year and trades at 14.6 times its projected 12-month earnings, near the cheapest since May 2014.

Sun Pharmaceutical rallied 3.4 per cent to Rs 855.8. Dr Reddy's rose 3.7 per cent to Rs 2,960.7 after the company said it will buyback around 4.48 million shares, or about 2.6 per cent of its capital. Adani Ports advanced 6.1 per cent to Rs 212.5. Reliance Industries added 2.4 per cent. Tata Motors climbed three per cent.

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First Published: Feb 17 2016 | 10:06 PM IST

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