India’s Sensex Advances on Positive Start to Earnings Season

(Bloomberg) -- India stocks rose as investors focused on company earnings while weighing the impact of the continuing spread of coronavirus infections on the business outlook.

The S&P BSE Sensex climbed 1.1% to 37,418.99 in Mumbai, after closing above a key technical barrier on Friday and capping its longest stretch of weekly wins since December. The measure’s 50-day moving average has already crossed above its 100-day equivalent, creating a golden cross pattern that some investors read as a sign of more gains to come. The NSE Nifty 50 Index also advanced by a similar magnitude.

“The underlying sentiment remains strong with ample liquidity in the market that should help the index to sustain in the buy zone,” said Anita Gandhi, an investment adviser at Arihant Capital Markets Ltd. in Mumbai. “Company results so far have been positive.”

Of the six Nifty 50 companies that have announced the April-June quarterly results so far, four have either beaten or met analyst estimates on profits.

The rupee strengthened 0.1% to 74.9162 per U.S. dollar, while the yield on the 5.79% 2030 government bonds fell one basis point at 5.80%.

The Numbers

• Fifteen of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of software exporters
• HDFC Bank Ltd. contributed the most to the Sensex gain by rising 3.1% while Bajaj Finance Ltd. had the largest gain, rising 4.2%; Sun Pharmaceutical Industries Ltd. had the biggest drop and was the biggest drag, falling 3.9%

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