India’s Sensex Gains, Buoyed by Shares of Private Lenders

India’s benchmark equities index rose, trimming its steepest monthly loss since May. The nation’s private-sector lenders, ICICI Bank Ltd. and Axis Bank Ltd. provided today’s biggest boost.

The S&P BSE Sensex advanced 1.6% in Mumbai, trimming its loss for the month so far to 1.7%. The NSE Nifty 50 Index also advanced 1.6% today.

Lenders contributed most to gains in both measures with expectations of central bank keeping interest rates on hold at close to a record low. The policy announcement, slated for Thursday, was rescheduled today over a possible lack of a quorum in the Monetary Policy Committee.

“With low interest rates globally, equities continue to have an edge over other asset classes,” said Kranthi Bathini, an investment adviser at WealthMills Securities Pvt. in Mumbai. An increase in coronavirus recoveries is also buoying sentiment, he said.

India’s economy is headed for its deepest recorded contraction, while coronavirus cases topping 6 million are the second highest in the world. About 5 million people have recovered from the virus and the pace of weekly new infections is slowing, data shows.

Sovereign Indian bonds declined ahead of an announcement of the government’s second-half borrowing plan on Wednesday. The yield on 10-year government bonds rose 2 basis points to 6.06%, while the rupee weakened 0.2% to 73.7850 per U.S. dollar.

The Numbers

  • All 19 sector indexes compiled by BSE Ltd. rose, led by a gauge of power companies
  • IndusInd Bank Ltd. was the top gainer on the Sensex, rising 7.9%, followed by Bajaj Finance Ltd.’s 6.3% advance

Market-related stories

©2020 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.