India Stocks Gain as Investors Weigh Growth Against Virus Risk
India Stocks Volatile as Investors Weigh Growth and Risks
(Bloomberg) -- India stocks rose at the end of a volatile trading day as investors mulled the outlook for economic growth against corporate risks as the coronavirus continues to spread.
The S&P BSE Sensex climbed 0.5% in Mumbai to close at its highest level since early March, just short of breaking through its 200-day moving average, a key technical barrier. The NSE Nifty 50 Index advanced 0.3%.
Signs of economic growth are emerging in India as business gradually reopens from a prolonged lockdown. Still, India’s coronavirus epidemic has become the third biggest in the world as infections surged after containment was eased.
“By all parameters this rally looks overstretched,” said Rajat Bose, an independent market analyst based in Kolkata, “Breaching the 200-day moving average would be a signal to take some money off the table.”
The yield on the benchmark 10-year government bond fell to 5.79%. The rupee weakened 0.3% to 74.9350 per U.S. dollar.
The Numbers
- Twelve of 19 sector sub-indexes compiled by BSE Ltd. fell, led by a gauge of oil and gas companies.
- Reliance Industries Ltd. was the biggest drag on the index with a 1.5% decline; Infosys Ltd. gave the biggest boost to the index with a 4% gain, Bajaj Finance Ltd. was the biggest winner, netting a 7.8% jump
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