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Indian Stocks Climb as World’s Biggest Lockdown Draws to an End

Indian Stocks Climb as World’s Biggest Lockdown Draws to an End

(Bloomberg) -- Indian stocks pared gains driven by optimism around the country entering the first phase of opening up its economy, with hotels, restaurants and shopping malls permitted to function after more than two months of lockdown.

The S&P BSE Sensex rose 0.2% as of the 3:30 p.m. close in Mumbai, trimming an advance of as much as 1.9%. The NSE Nifty 50 Index gained 0.3%.

Indian equities capped a second week of gains Friday as global funds stepped up purchases after the government began easing curbs to revive an economy that’s set for its first full-year contraction in more than four decades. The resumption of a global rally in risk assets has seen foreigners pour more than $4 billion into local shares so far this quarter, the most in Asia.

“Optimism has built up over the opening up of the economy and forecast of a good monsoon,” said Sudip Bandyopadhyay, who oversees investments at Inditrade Capital Ltd. in Mumbai. “The bigger reason has been the supportive global rally and foreigners buying heavily.”

The yield on the most-traded 6.45% 2029 bond was little changed at 6.02% on Monday, while the rupee strengthened marginally to 75.5437 per U.S. dollar.

The Numbers

  • Twelve of 19 sector sub-indexes compiled by BSE Ltd. gained, led by a gauge of oil and gas companies
  • Infosys Ltd. contributed most to the Sensex advance, adding 2.4%; IndusInd Bank Ltd. rose the most, gaining 6.9%; HDFC Bank Ltd. lost 1.9% and was the biggest drag, while Mahindra & Mahindra Ltd.’s 2.8% fall was the steepest.

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