Both the Sensex and Nifty 50 Index closed today at all-time highs, in fact, propelled higher ahead of tomorrow’s key central bank policy meeting. The Indian markets were closed on Tuesday for a holiday, and traders came back with a vengeance after the re-opening.
As Bloomberg reports, the gains were far-reaching in the session, with real estate plays leading the averages higher:
Ten of the 13 sector gauges compiled by BSE Ltd. rose, paced by the S&P BSE Realty Index. The measure of 10 property developers jumped 4.1 percent to its highest level since April 2015. Sobha Ltd. led gains, surging 17 percent. The company posted its steepest gain in a day since November 2009 after an exchange filing showed its revenue in the quarter ended March rose 35 percent from the previous three months.
Today’s bullish move comes after a bit of a consolidation period we saw developing back in late March, with the red-hot Indian markets attempting to digest their 2017 gains for a bit.
Foreign investor demand for Indian equities remains very high, with overseas investors buying $6.7 billion worth of local stocks in the first quarter alone. That total was the highest among all major Asian markets, according to Bloomberg.
The iShares MSCI India ETF (BATS:INDA) was trading at $31.85 per share on Wednesday morning, up $0.13 (+0.41%). Year-to-date, INDA has gained 18.80%, versus a 5.96% rise in the benchmark S&P 500 index during the same period.