Global Rally Lifts Sensex Amid Volatility Before Rate Decision
Auto stocks including Mahindra & Mahindra Ltd. were among the top gainers on the Sensex, while ITC Ltd. dropped.
(Bloomberg) -- India stocks advanced in volatile trading, a day before the central bank’s policy meeting, tracking a global rally on optimism that the economic impact of the coronavirus will prove short-lived.
The S&P BSE Sensex Index rose 0.9% to close at 41,142.66 after marking its biggest one-day gain since September on Tuesday. The NSE Nifty 50 Index also added 0.9%. Asia stocks headed for their first two-day advance since fears about the virus deepened last month.
Investors will look for cues on the slowing pace of economic growth from Thursday’s central-bank meeting that’s expected to keep interest rates unchanged. As the reporting season continues, 17 out of 34 Nifty 50 companies that have posted earnings so far have missed estimates, according to data compiled by Bloomberg.
Strategist Views
“We believe post budget, the focus is now shifting toward macros and earnings,” Ajit Mishra, an analyst at Religare Broking Ltd. wrote in a note on Tuesday. “Further, the RBI monetary policy meet is awaited as it will throw light on the inflation trajectory as well as provide an economic outlook.”
The Numbers
- Sixteen of the 19 sector sub-indexes compiled by BSE Ltd. rose, led by a gauge of metal stocks.
- Tata Steel Ltd. was the top gainer on the Sensex, while Hero Motocorp Ltd. dropped the most.
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--With assistance from Ishika Mookerjee.
To contact the reporter on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Margo Towie, Cecile Vannucci
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