India’s Sensex Gains as Policy Makers Pledge to Support Economy
Indian stocks extended opening gains to trade at day’s high.
(Bloomberg) -- India’s benchmark equity index rose, in line with Asia peers, as investors weighed the global policy responses to cushion the effect of novel coronavirus outbreak on economies.
The gains in S&P BSE Sensex Index were meager compared to the region. It climbed 0.2% to 38,470.61 in Mumbai, after rising as much as 1.3% earlier in the the day. The NSE Nifty 50 Index also rose 0.2%.
India’s central bank joined global policy makers in saying it had options to support the nation’s economy through the public-health crisis. The nation’s infections jumped to 29, prompting a step up of surveillance and testing measures.
Yes Bank Ltd. surged 26% on news the Indian government has approved a rescue plan for the lender involving capital infusion by a consortium led by State Bank of India. The state-run lender rose 1.1%, reversing its day’s loss of as much as 5.4%.
Strategist View
“There is short covering after gains in the U.S market, but the market will continue to see volatility till there is a better control on the spread of the coronavirus,” said Sudip Bandyopadhyay, chairman at Mumbai-headquartered Inditrade Capital Ltd. “The declines were also kind of due given the slowdown in the economy and weak corporate performance.”
The Numbers
- Twelve of 19 sector indexes compiled by BSE Ltd. rose, led by a gauge of telecom companies
- Kotak Mahindra Bank Ltd. contributed the most to the index gain and had the largest move, increasing 2.7%
Market-related stories
To contact the reporter on this story: Nupur Acharya in Mumbai at nacharya7@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Margo Towie, Kasper Viita
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