Friday , June 5 2020

Indian stocks gain on optimism about virus curbs easing


Indian stocks climbed, putting the main indexes on track for the third day of gains, amid optimism of economic revival as the nation gradually exits from the world’s strictest lockdown.
The S&P BSE Sensex climbed 0.5% to 30,983.04 as of 10:11 am in Mumbai, while NSE Nifty 50 Index rose by a similar magnitude. Both the measures posted their biggest gain since end-April. The rupee rose 0.1% to 75.70 per dollar, while the yield on the new 10-year bond fell two basis points to 5.75%.
In the latest sign of easing restrictions, the government allowed airlines to resume domestic flights next week — exactly two months after the lockdown grounded all planes — even as infections in India jumps at the fastest pace in Asia. Goldman Sachs Group Inc. warned earlier this week that India will suffer its deepest recession ever.
“Markets are trying to remain optimistic and build hopes that things will get better as the government is easing the lockdown,” said Umesh Mehta, head of research at Samco Securities Ltd. in Mumbai. “Markets will remain
cautiously bullish.”
The contagion is escalating in the South Asian nation of 1.3 billion people, with 112,028 infections and 3,434 deaths, according to data from John Hopkins University.
As the earnings season for the quarter through March continues, only six out of 22 Nifty 50 companies that have reported results so far have beaten estimates.

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