India Stocks Rise as More Restrictions on Business Are Lifted
India stocks rose after the economy eased more restrictions on business activity.
(Bloomberg) -- India stocks rose after Asia’s third-largest economy eased more restrictions on business activity.
The S&P BSE Sensex climbed 1.7% to 38,697.05 in Mumbai, while the NSE Nifty 50 Index advanced by 1.5%. Both measures yesterday capped their first consecutive quarterly gains since the period through June last year. Indian markets are closed for a holiday tomorrow.
Cinemas will be allowed to reopen from Oct. 15, providing a boost to sentiment as India continues to lift restrictions. The number of additional coronavirus cases has eased to the lowest in a month even as the nation remains on track to take over the U.S. with the most infections in the world.
Indian businesses are counting on a pickup in consumer spending from this month due to the annual festive season, while history shows a five-year average 1.4% advance in the Sensex in October.
“October will be better as people will spend more than they usually do in other months,” said Rajat Bose, an independent analyst based in Kolkata, “There will be bullish sentiment for a short while and the market is likely to go up.”
Meanwhile, shares in financial infrastructure provider Computer Age Management Services Ltd. climbed 14%, and shares in Chemcon Specialty Chemicals Ltd. surged 72% on their their trading debuts.
The yield on the benchmark 10-year government bond dropped by three basis points to 5.99%, while the rupee strengthened 0.8% to 73.14 against the U.S. dollar.
The Numbers
- Seventeen of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of banks
- Twenty-five Sensex shares fell while five rose
- HDFC Bank Ltd. contributed most to the Sensex gain with a 2.6% increase, while IndusInd Bank Ltd.’s 12.4% jump was the steepest. ITC Ltd. was the biggest loser, slipping 0.5%
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