Sensex snaps six-session losing streak

Most stocks advanced, with the benchmark ending the longest losing streak in almost six months, as metal producers and energy companies climbed.

Vedanta, the biggest copper and zinc producer, rebounded after declining about 10 per cent over the last two days. Hindalco Industries, an aluminum producer, rose the most in three weeks. NTPC, the largest power generator, climbed to a three-month high, while Oil & Natural Gas Corp increased for a second day. Tata Motors Ltd. slid the most since October 30. Larsen & Toubro, the most valuable engineering firm, completed its longest stretch of losses on record.

About nine shares climbed for every seven that fell on the broader S&P BSE 100 Index, which rose 0.2 per cent. The S&P BSE Sensex added 0.1 per cent to 26,590.59 at the close, after changing direction at least eight times. The benchmark gauge lost 3.3 per cent in six days through Monday as results of some of the biggest companies disappointed investors. While 68 per cent of Sensex companies that posted results for the September quarter have matched or beaten estimates, versus 60 per cent in June, the gauge's earnings have risen just two per cent over the previous quarter, data compiled by Bloomberg show.

 

"This quarter will mark the bottom in terms of the degrowth we have seen in earnings," Mahesh Patil, co-chief investment officer at Birla Sunlife Asset Management Co, which has $19 billion in assets, said in an interview to Bloomberg TV India. "Growth should look better because of the base effect" from the quarter ending in December, he said.

Patil said he's bullish on companies linked to urban demand as they are likely to benefit more than manufacturers focused on rural consumption from the higher income growth and a fall in borrowing costs. Vedanta added 1.5 per cent, paring this year's loss to 54 per cent. Hindalco increased 1.7 per cent to its highest level since October 30.

NTPC rallied 2.3 per cent, the best performer on the Sensex. Mahindra & Mahindra, a tractor maker, increased two per cent.

GAIL India, the biggest gas supplier, posted a second- quarter profit of Rs 441 crore, missing the Rs 520 crore estimate. The shares fell 1.1 per cent. Earnings were announced after trading ended.

Tata Motors lost 1.5 per cent, the most since October 30. Larsen & Toubro slid 1.1 per cent in an 11th day of drop, the most since at least 1991. The stock is trading at its lowest level since May 2014.

Amtek Auto jumped 14 per cent, paring this year's loss to 75 per cent. The company is looking to sell 25 per cent to 40 per cent stakes in its units overseas, John Flintham, senior managing director at Amtek, said in an interview with Bloomberg TV India.

Global funds sold a net Rs 6.8 crore of local stocks on November 2, paring this year's inflow to $4.4 billion.

The Sensex has fallen 3.3 per cent this year and trades at 15.5 times projected 12-month earnings. The MSCI Emerging Markets Index is valued at a multiple of 11.3.