India’s Sensex Rises in a Volatile Session Ahead of Growth Data
India Stocks Snap Two Sessions of Gains Ahead of Growth Data
(Bloomberg) -- Indian stocks rose, in a volatile session, ahead of data that will indicate the extent that growth was slowing before the pandemic lockdown.
The S&P BSE Sensex advanced for a third session, rising 0.7% to 32,424.10, reversing losses of as much as 1.2% during the day. The NSE Nifty 50 Index climbed 1%. Both measures are down at least 3% this month after April’s rebound from record losses on March 23, when the lockdown was imposed.
India’s economic scorecard for the three months through March, due later on Friday, will probably show growth slowed to 1.6% from a year earlier, estimates in a Bloomberg survey show. The effect of the lockdown prompted Goldman Sachs Group Inc. to this week predict a record annual contraction of 5% for the year that began April 1.
“Investors will watch for prospects of some companies restarting their production and getting demand back,” said Deven Choksey, a strategist at KRChoksey Investment Managers Pvt in Mumbai. “It will be a stock-specific market.”
The yield on India’s 10-year benchmark bond rose one basis point to 5.76%, while the rupee strengthened 0.2% to 75.6175 per U.S. dollar.
Of the 28 Nifty 50 companies that have announced results for the quarter through March, only nine have beaten analysts’ expectations. The earnings season has been extended through June 30 to account for filing issues posed by the lockdown.
The Numbers
- Fifteen of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a measure of realty companies
- ITC Ltd. provided the biggest boost to the Sensex, advancing 3.6% , Oil & Natural Gas Corp Ltd. had the largest gain, rising 5.5%
Market-related stories
- Barclays, Nomura Back Offices in India Face Lockdown Fallout
- India’s Economic Growth May Slip to 1.6% Amid Lockdown: Chart
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