India Sensex Rebounds From Worst Seven-Day Rout in Five Years
(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.
“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.”
- 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
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