India’s Sensex Advances as Fund Inflows to Stocks Continue
The Bombay Stock Exchange in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

India’s Sensex Advances as Fund Inflows to Stocks Continue

India’s benchmark equity index advanced, in line with peers in Asia, as investors weighed the prospect of business recovery against the pace of new coronavirus infections.

The S&P BSE Sensex climbed 0.6% to 38,407.01 in Mumbai, completing its longest stretch of gains in three weeks. The NSE Nifty 50 Index rose 0.5%.

India’s stimulus measures aimed at cushioning the effect of lockdown measures on the economy has helped slow a slide in corporate credit quality, according to a review of downgrades by India’s four main credit assessors.

“The positive momentum may continue until some negative event or news emerges,” said Umesh Mehta, head of research at Mumbai-based Samco Securities Ltd.

Foreign investors bought a net $1.3 billion of local shares in the first seven days of August as inflows continue into a fourth month. Still, a steady increase in new coronavirus infections continues to curb business activity, with the economy on course for its first contraction in 40 years.

As earnings continue, 24 of the 37 Nifty 50-member companies that have announced results so far have beaten or matched estimates.

The rupee strengthened 0.2% to 74.77 per U.S. dollar, while the yield on 10-year government bonds was little changed at 5.90%.

The Numbers

  • Nine of the 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of metal companies
  • HDFC Bank Ltd. contributed the most to the Sensex advance, increasing 1.6% while Axis Bank Ltd. had the largest gain, rising 4%
  • Titan Co Ltd. was the biggest drag on the index and had the biggest drop, declining 3.7% after the company reported a quarterly net loss that was wider than analysts’ consensus estimate.

Related Stories

©2020 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.