India’s Sensex Rises for a Second Day in a Volatile Session
Reliance Industries Ltd. gave the Sensex its biggest boost, while Housing Development Finance Corp. was the biggest drag.
(Bloomberg) -- India’s benchmark equity index closed higher, led by Reliance Industries Ltd., after fluctuating between gains and losses for most of the session.
The S&P BSE Sensex rose 0.5% to 39,086.03, after falling as much as 0.4% earlier in the day. The NSE Nifty 50 Index added 0.6%. Both indexes capped their third consecutive month of gains in August, rising more than 50% from the pandemic-led sell off in March.
Volumes were below recent averages, “probably hinting at the impact of the new margining system,” said Deepak Jasani, head of retail research at HDFC Securities Ltd. A new rule kicked in from Tuesday that requires individuals to put upfront funds or stock against buy or sell orders and penalizing non-compliant brokers.
Of the 48 Nifty 50-listed firms that have announced results so far, 29 beat or matched estimates. Coal India Ltd. is due to post earnings today, leaving Vedanta Ltd. as the only remaining company to give its earnings.
The rupee weakened 0.2% to 73.0313 per U.S. dollar, while the yield on 10-year government bonds fell two basis points to 5.92%.
The Numbers
- All 19 sector indexes compiled by BSE Ltd. rose, led by a gauge of energy stocks
- Mahindra & Mahindra Ltd. had the largest gain, rising 5.8% while Housing Development Finance Corp Ltd. was the biggest drag on the Sensex, declining 1.3%
- Bajaj Auto Ltd. had the biggest drop, falling 2.6%
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