India Stocks Rise as Investors Turn Attention to Fiscal Spending

(Bloomberg) — India stocks advanced, extending gains for a second day on the expectation that the government’s plans to spend big will haul the country out of its economic woes.

The climbed 0.3% to 41,419.41 at 9:39 a.m. in Mumbai. The Index advanced by a similar magnitude.

The Sensex has had a positive January in six out of the last 10 years. The benchmark stock gauge rose 14% in 2019 even as the economy grew at its slowest pace in more than six years, suggesting that investors have largely priced in a slowdown.

As activity picks up again across markets globally, focus will shift to the companies and sectors that will benefit from fiscal spending and next month’s budget presentation.

Strategist View

While foreign institutional investors will be reshuffling their portfolios ahead of the budget, “no one is going to take considerable money off the table” as they weigh their options, said Umesh Mehta, head of research at Samco Securities Ltd.

The Numbers

• Seventeen of 19 sector sub-indexes compiled by BSE Ltd. rose, led by a gauge of metal companies
• Reliance Industries Ltd. contributed the most to the index advance, while Tata Steel Ltd. had the largest gain, rising 1.6%
• Titan Co. Ltd. was the biggest drag on the index and also had the largest drop, declining 0.6%

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