India Sensex Rebounds From Worst Seven-Day Rout in Five Years
Most other Asian markets have rebounded since Monday on optimism of monetary policy support.
(Bloomberg) -- India’s benchmark stock index rebounded from its steepest seven-day slump in more than five years as investors reassessed the extent to which the novel coronavirus could derail economic growth.
The S&P BSE Sensex climbed 1.3%, its biggest advance in a month, to 38,623.70 at the close in Mumbai. Volatility spiked to an eight-month high Monday, when the benchmark erased gains as two new cases of the virus were confirmed in the world’s second-most populous nation. The NSE Nifty 50 Index rose 1.5% Tuesday.
India had previously reported just three people infected with the virus, all of whom have since recovered. Most other Asian markets have rebounded since Monday on optimism of monetary policy support to ease the impact of the epidemic on economies.
Strategist View
“There is a global thought process on how to deal with the virus and as more clarity emerges on the action plan, we will see market sentiment stabilizing,” said Dharmesh Kant, the Mumbai-based head of research at Indianivesh Securities Ltd. Still, “March looks like a difficult month.”
The Numbers
- All 19 sector indexes compiled by BSE Ltd. rose, led by a gauge of metal companies
- Reliance Industries Ltd. increased 2.2% to give the Sensex its biggest boost in weighted terms, while Sun Pharmaceutical Industries Ltd.’s 6.6% gain was the steepest
Market-related stories
- Investors Yank $134 Million From U.S.-Listed Indian ETF: Chart
- Virus Panic Weighs on India’s Blockbuster Credit Card IPO
- Decisive RBI Means India Rates Can Fall Further, Citibank Says
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, Anto Antony
©2020 Bloomberg L.P.