India Stocks Rise for Third Day on Optimism About Curbs Easing
(Bloomberg) -- Indian stocks climbed for a third straight day amid optimism of economic revival as the nation gradually exits from the world’s biggest lockdown.
The S&P BSE Sensex climbed 0.4% to close at 30,932.90 in Mumbai, while NSE Nifty 50 Index rose by a similar magnitude. Both the measures on Tuesday posted their biggest gain since end-April. The rupee rose 0.2% to 75.6150 per dollar, while the yield on the new 10-year government bond fell one basis point to 5.77%.
In the latest sign of easing restrictions, the government allowed airlines to resume domestic flights next week -- exactly two months after the lockdown grounded all planes -- even as infections in India jumps at the fastest pace in Asia. Goldman Sachs Group Inc. warned earlier this week that India will suffer its deepest recession ever.
“Markets are trying to remain optimistic and build hopes that things will get better as the government is easing the lockdown,” said Umesh Mehta, head of research at Samco Securities Ltd. in Mumbai. “It will remain cautiously bullish.”
The contagion is escalating in the South Asian nation of 1.3 billion people, with 112,028 infections and 3,434 deaths, according to data from John Hopkins University.
As the earnings season for the quarter through March continues, only seven out of 24 Nifty 50 companies that have reported results so far have beaten estimates.
- 13 of 19 sector sub-indexes gained, led by a gauge of auto companies.
- ITC Ltd. contributed most to the index advance and was the steepest gainer with a 7.5% jump. HDFC Ltd. was the biggest drag, while IndusInd Bank Ltd. was the biggest loser with a 2.9% drop.
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