India’s benchmark equity index advanced, in line with peers in Asia, as investors weighed the prospect of business recovery against the pace of new coronavirus infections.
The S&P BSE Sensex climbed 0.6% to 38,407.01 in Mumbai, completing its longest stretch of gains in three weeks. The NSE Nifty 50 Index rose 0.5%.
India’s stimulus measures aimed at cushioning the effect of lockdown measures on the economy has helped slow a slide in corporate credit quality, according to a review of downgrades by India’s four main credit assessors.
“The positive momentum may continue until some negative event or news emerges,” said Umesh Mehta, head of research at Mumbai-based Samco Securities Ltd.
Foreign investors bought a net $1.3 billion of local shares in the first seven days of August as inflows continue into a fourth month. Still, a steady increase in new coronavirus infections continues to curb business activity, with the economy on course for its first contraction in 40 years.
As earnings continue, 24 of the 37 Nifty 50-member companies that have announced results so far have beaten or matched estimates.
The rupee strengthened 0.2% to 74.77 per U.S. dollar, while the yield on 10-year government bonds was little changed at 5.90%.
{{/usCountry}}The rupee strengthened 0.2% to 74.77 per U.S. dollar, while the yield on 10-year government bonds was little changed at 5.90%.
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