Indian Stocks Volatile as Investors Weigh Earnings Against Rising Infections
Indian Stocks Volatile as Investors Weigh Earnings Against Rising Infections
(Bloomberg) -- Indian stocks rose after a volatile session, as investors weighed corporate earnings that beat expectations against rising coronavirus infections.
The S&P BSE Sensex climbed 0.5% to 38,050.78 after dropping as much as 0.4%. The NSE Nifty 50 Index swung in a similar range and closed up 0.6%.
While the aggregate net income of 47 Nifty 50 members slumped about 40% in the quarter ended June from a year ago, about two-thirds of the companies met or exceeded estimates, data compiled by Bloomberg show. The data includes HDFC Life Insurance Co. and excludes Vedanta Ltd.
“Margin rise was the key surprise driver” for the earnings amid cost savings, analysts led by Mahesh Nandurkar at Jefferies Financial Group Inc. wrote in a note.
Vedanta, Coal India Ltd., Oil & Natural Gas Corp. and Zee Entertainment Enterprises Ltd. have yet to report. No announcements are expected today.
Foreign investor flows into Indian equities have reached $3.6 billion so far in August, the highest in Asia excluding China, as funds pile into additional share sales. The South Asian nation’s firms have sold $8.9 billion worth of new stock year-to-date, the most on record for such a period, according to data compiled by Bloomberg.
India’s death toll from Covid-19 is the fourth highest globally. Total confirmed coronavirus cases of 2.6 million are the third-largest in the world, while 1.86 million have recovered from the disease.
The yield on the most-traded 5.79% 2030 bond rose two basis point to 5.98%, while the rupee was little changed at 74.8850 per dollar.
The Numbers
- Sixteen of 19 sector sub-indexes compiled by BSE Ltd. rose, led by a gauge of power companies
- NTPC Ltd. contributed the most to the Sensex’s advance, rising 7.9%, and was also the biggest gainer
- State Bank of India declined the most, falling 1.7%
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