India Stocks Advance as Companies Gradually Open for Business
Indian stocks rose amid optimism the restarting of business will help revive the economy.
(Bloomberg) -- Indian stocks rose amid optimism the restarting of business will help revive the economy.
The S&P BSE Sensex Index added 1.9% to 32,200.59 in Mumbai, while the NSE Nifty 50 Index gained by an equal magnitude. Both gauges had crossed their 50-day moving averages on Wednesday.
India is allowing the gradual resumption of business even as coronavirus infections continue to climb. Still, S&P Global Ratings said the consequences of Covid-19 will lead to a large, permanent economic loss and deterioration in balance sheets.
“Lockdown-easing measures are helping improve the sentiment,” said Anita Gandhi, an investment adviser at Mumbai-based Arihant Capital Markets Ltd. “Everybody is optimistic is about the reopening of the economy but the case count will be the ultimate decision maker.”
The yield on India’s 10-year benchmark bond fell one basis point to 5.75%, while the rupee weakened 0.1% to 75.7625 per U.S. dollar.
Of the 28 Nifty 50 companies that have announced results for the quarter through March so far, only nine have beaten analysts’ expectations. The earnings season has been extended through June 30 to account for filing issues posed by the lockdown.
The Numbers
- All 19 sub-indexes compiled by BSE Ltd. advanced, led by a gauge of capital goods companies
- HDFC Bank Ltd. contributed the most to the Sensex advance, increasing 4.6%, while Larsen & Toubro Ltd. had the largest gain, rising 6.2%.
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