Friday , June 5 2020

India stocks rise for second straight day


Indian stocks rose, set for a second straight day of gains, as some investors bet there’ll be enough liquidity to support the economy as the nation gradually exits from the world’s biggest lockdown.
The S&P BSE Sensex climbed 0.7% to 30,410.91 as of 9:42 am in Mumbai, while the NSE Nifty 50 Index rose by a similar magnitude. Both measures have sunk more than 25% this year.
“Liquidity is going to be there for the near-term which casts a perfect recipe for a risk-on trade,” said Sanjiv Bhasin, a strategist at IIFL Securities Ltd. in Mumbai. “On the face level, the extension of the lockdown may have given weakness.”
The government has unveiled stimulus equal to 10% of the economy since February, while overseas investors have poured nearly $1.3 billion into India’s equities this month as the Sensex’s 12-month estimated price-to-earnings ratio fell below its three year average.
With a lockdown through May 31 gradually being eased to allow some commerce, India has 106,475 Covid-19 infections and 3,302 deaths, according to data from John Hopkins University.
As the earnings season for the quarter through March continues, only five of the 20 Nifty 50 companies that have reported results so far have beaten analyst estimates.
Eighteen of 19 sector sub-indexes compiled by BSE Ltd. gained, led a gauge of fast moving consumer companies.
HDFC Bank Ltd. added 1.5% and contributed the most to the Sensex’s gains.

while ITC Ltd.’s 2.7% advance was the biggest. Tata Consultancy Services Ltd. lost 0.7% and was the biggest drag and Hero MotoCorp Ltd. was the biggest loser with a 2.7% drop.

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