Indian stocks climbed along with Asian equities, with the benchmark index forming a pattern that some analysts read as a sign of more gains to come.
The S&P BSE Sensex climbed 1% to 38,799 points in Mumbai, making a “golden cross” – a bullish indicator when the 50-day moving average rises above the 200-day line. The NSE Nifty 50 Index advanced 0.8%.
Indian equities on Friday capped their best week since July as investors looked past rising coronavirus cases – infections topped the 3mn mark – amid a better-than-expected earnings season and foreign stock purchases of $5.5bn in August, set to be the most in 17 months.
For the technical pattern to spur further gains, large-cap stocks with a high weighting in the index would need to rise more than they have recently, said Rajat Nag, an independent analyst based in Kolkata. “You have to push this juggernaut on the upside,” he said.
The quarterly earnings season is nearly over, with 29 of the 47 Nifty 50 companies that have reported results beating or matching estimates.
Yield on the benchmark 10-year government bond rose eight basis points to 6.17%, while the rupee advanced 0.7% to 74.3212 against the US dollar.
Fifteen of 19 sector sub-indexes compiled by BSE Ltd advanced, led by a gauge of banks. Sixteen Sensex shares rose while 14 fell. HDFC Bank Ltd contributed most to the index advance with a 2.9% jump, Kotak Mahindra Bank Ltd was the biggest winner with gains of 3.5%.
Power Grid Corp of India Ltd dropped the most and was the biggest drag on the index, falling 2.1%.
Meanwhile the Indian rupee yesterday ended at a five-month high against the US dollar tracking domestic equity markets. Bond yields hit a three-month high after the Reserve Bank of India sold debt at higher-than-expected yields at Friday’s auction and amid a surge in inflation.
The Indian currency closed at 74.32 a dollar, a level last seen on March 18 from its previous close of 74.85. It gained 0.72%, which is its maximum since July 2.
Domestic equity markets surged, gaining over 3% so far this August, amid better- than-expected earnings and continued buying interest from foreign investors. FIIs bought $5.50bn in equities in August, set to be the most in 17 months. Since May, they bought $10.38bn, while so far this year, they bought $4.21bn in equities.
The quarterly earnings season is nearly over with 29 of the 47 Nifty companies that have reported results beating or matching estimates, Bloomberg analysis showed.
The 10-year bond yield closed at 6.165%, a level last seen on 12 May, against its previous close of 6.088%.
from Gulf Times https://ift.tt/3lpfRHs
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