India’s equity benchmark is set to snap its longest losing streak since March following a global rally in equities.
The S&P BSE Sensex rose 1% to 37,324.84 as of 10:25 am in Mumbai. The gauge had declined in six of the last seven sessions as some investors judged its rebound from March lows as overdone in the backdrop of the world’s third-highest number of coronavirus cases. The NSE Nifty 50 Index also rose 1% on Tuesday.
The coronavirus pandemic has pushed India’s economy towards its first annual contraction in more than four decades. The country has one of the world’s fastest growing epidemics, adding about 50,000 cases every day.
The risk-reward is “unattractive” at current levels, with markets already pricing in a sharp recovery in growth, UBS Group AG’s analysts Gautam Chhaochharia and Dipojjal Saha wrote in a note.
As the reporting season continues, 20 out of 30 Nifty 50 companies that have posted earnings so far have exceeded or matched estimates, according to data compiled by Bloomberg. Investors will be watching for commentary on the economic outlook from the central bank on Thursday, when policy makers are expected to cut the key interest rate by 25 basis points.
The yield on the 5.79% 2030 bond rose one basis point to 5.85%, while the rupee weakened 0.2% to 75.1725 per dollar.