(Bloomberg) -- Indian stocks fell, with the benchmark retreating from a level indicating bull territory, ahead of earnings reports that may give some insight into the outlook for companies under lockdown in the world’s second-most populous country.
The S&P BSE Sensex declined 1% to 30,379.81 at the 3:30 p.m. close in Mumbai after rising as much as 2.9%, while the NSE Nifty 50 Index dropped 0.8%. Earlier in the day, both gauges had risen to levels representing a rebound of more than 20% from their March 23 low, an increase seen as a technical bull market. Indian markets were closed Tuesday for a holiday.
India’s quarterly corporate earnings season kicked off on Wednesday with Wipro Ltd. reporting results after market hours that were in line with analyst estimates.
Prime Minister Narendra Modi on Tuesday extended a nationwide lockdown through May 3 as India steps up its fight to contain the spread of the new coronavirus among its 1.3 billion people. The prolonged lockdown is expected to result in a 25% drop in gross domestic product from a year earlier for the current quarter, according to Bloomberg Economics.
After taking cues from the U.S. in the morning, the market later started coming to terms with an extension of the lockdown, which has happened “without any economic or financial road map,” said Umesh Mehta, the Mumbai-based head of research at Samco Securities Ltd.
Read: Investors Eye Contracts, Weaker Rupee as Indian IT Giants Report
The Sensex surged last week after fewer virus cases were reported in some global hotspots. India currently has 11,555 confirmed cases and 396 deaths linked to the crisis.
The rupee weakened 0.2% to 76.4463 per U.S. dollar, while the 10-year bond yield dropped 7 basis points to 6.42%.
The Numbers
- Eleven of the 19 sector sub-indexes compiled by BSE Ltd. rose, led by a gauge of fast-moving consumer goods companies
- Eighteen Sensex shares fell while 12 rose
- Hindustan Unilever Ltd. contributed most to the index advance with a 6% increase; HDFC Bank Ltd. was the biggest drag, slipping 3.6%, while Kotak Mahindra Bank Ltd. was biggest loser, dropping 6.2%
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