India’s stock benchmark fluctuated as investors weighed the quality of local earnings and fading chances of a U.S. stimulus deal before next month’s election.
The S&P BSE Sensex was little changed at 40,789.64 as of 9:50 a.m. in Mumbai, after swinging between gains and losses of as much as 0.6%. The measure completed its best run of gains since 2007 on Wednesday. The National Stock Exchange(NSE) Nifty 50 Index was also flat after seesawing earlier today. Most stocks in Asia declined, with a region wide gauge losing 0.8%.
The market will be “volatile because valuations have moved above long-term average multiples,” Shibani Kurian, head of equity research at Kotak Mahindra Asset Management Co., said in an interview with Bloomberg Television. Sensex is trading at 21 times estimated earnings, which is two standard deviations above its five-year average.
As earnings season gathers pace, two of the three Nifty 50 firms that have reported so far missed analyst estimates for their quarterly results. Infosys Ltd rose as much as 4.3% after it beat profit expectations on Wednesday and raised its annual revenue forecast.
On the macro front, the monthly trade report is due later today. Both Sensex and Nifty 50 are close to erasing year-to-date losses, supported by inflows of about $1.1 billion into Indian equities from foreign buyers this month.
The yield on the 10-year government bond was steady at 5.9%. The rupee was also a little changed at 73.3100 per dollar.