Indian Stocks Advance as Investors Assess Revival Outlook
Indian Stocks Advance as Investors Assess Revival Outlook
(Bloomberg) -- Indian stocks rose as they entered their final full week of trading for the quarter, as investors weighed the reopening of the economy against a rising number of novel coronavirus infections in rural areas.
The S&P BSE Sensex added 0.5% to 34,911.32 in Mumbai, while the NSE Nifty 50 Index advanced 0.7%. While volatility may be heightened this week ahead of the expiry of futures contracts on Thursday, both measures are set for their biggest quarterly gain since 2009.
“Investors will focus on some heavyweight sectors in the indexes such as financials as the economy reopens and there’s growth in credit,” said Abhimanyu Sofat, head of research at Mumbai-based IIFL Securities Ltd.
Pharmaceutical stocks got a boost after winning regulatory approval for Covid-19 treatments. Glenmark Pharmaceuticals Ltd. jumped the most on record after it got approval to sell an oral drug to treat coronavirus, while Cipla Ltd. rose as much as 9.4% on news it got a nod to sell its remdesivir treatment.
Coronavirus infections have now spread to 98 of the country’s 112 poorest rural districts, up from 34 on April 15, according to a government report. While India eased its national lockdown on June 8, the nation has so far reported more than 400,000 cases, the fourth-highest tally in the world. The number includes 227,756 recovered cases.
After deadly border clashes with China last week, India said the two nations will join in a summit with Russia on Tuesday.
The rupee strengthened 0.2% to 76.0250 versus the U.S. dollar, while the yield on the most-traded 6.45% 2029 bond rose 1 basis point to 6.01%.
The Numbers
- All but one of 19 industry sub-indexes compiled by BSE Ltd. rose, led by a gauge of power companies
- Bajaj Auto Ltd. was the top gainer on the Sensex, rising 6.7%, while Reliance Industries Ltd. was the biggest drag, declining 0.7%
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