India Stocks Erase Losses as Investors Assess Economic Revival
At opening bell, the S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,317 and 11,683 respectively.

India Stocks Erase Losses as Investors Assess Economic Revival

India’s stock benchmarks erased early losses to end the day little changed as investors assessed a nascent economic recovery.

The S&P BSE Sensex closed at 46,263.17, about ten index points higher than Monday’s record close, while the NSE Nifty 50 Index advanced 0.1%. Both indexes earlier dipped as much as 0.9%. Asian equities were broadly lower as investors considered the prospects of further virus-related business restrictions.

“We don’t see potential for material gains from here as the best case scenario is factored into the current valuations,” said Amit Khurana, head of research at Dolat Capital Market Ltd. in Mumbai. “The market is now more at the top of our range.”

Foreign investors have poured about $20 billion into Indian equities this year, the most since 2012, helping drive key gauges to new highs. That’s even as the nation has the world’s second-highest coronavirus caseload. Signs the economy is crawling back from a collapse in activity have, however, stirred optimism.

Inflation slowed more than expected in November, a report showed after markets closed Monday, while trade data due later today may provide insights as to whether lockdowns abroad are continuing to hamper demand for Indian exports.

The yield on the benchmark 10-year government bond was little changed at 5.89% while the rupee weakened 0.1% to 73.6400 against the U.S. dollar

The Numbers

  • Twelve of 19 sector sub-indexes compiled by BSE Ltd. rose, with a gauge of consumer durable companies gaining the most
  • Half the constituents of the 30-member Sensex index advanced
    • Housing Development Finance Corp Ltd. gave the biggest boost, and added 2.2%, Bajaj Finance Ltd. saw the steepest rise, and gained 4.7%; Reliance Industries Ltd. was the biggest drag on the index, falling 0.9%

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