India’s Stock Market Hits Record After Trade Deficit Narrows

Indian stocks rose to a record, erasing an intraday loss, after data showed the trade deficit narrowed last month, adding to signs the economy is improving.

State Bank of India surged to a four-year high as concerns on the asset quality of the nation’s biggest lender eased. Tata Motors Ltd. (TTMT) surged to an all-time high after saying Jaguar Land Rover plans to start a plant in China by the year-end. Reliance Industries Ltd. (RIL), owner of the world’s largest refining complex, advance for the first time in four days.

The S&P BSE Sensex (SENSEX) rose 0.5 to a record 28,177.88 at the close. The gauge erased a loss of as much as 0.5 percent after the government reported the trade gap in October narrowed to $13.4 billion from $14.25 billion in September. Data last week showed consumer-price gains last month were the least since early 2012, while factory output rose at the fastest pace in three months. The economy may grow at 7 to 8 percent in two years, Jayant Sinha, the junior finance minister, said Nov. 10.

“India is going back into the high-growth, low inflation environment,” Adrian Mowat, the chief Asia and emerging market equity strategist at JPMorgan Chase & Co., said in a Bloomberg Television TV India interview today. “We remain confident with the fundamental story.”

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza