India’s benchmark equities index rose, trimming its steepest monthly loss since May.
The nation’s private-sector lenders, ICICI Bank Ltd and Axis Bank Ltd provided yesterday’s biggest boost.
The S&P BSE Sensex advanced 1.6% in Mumbai, trimming its loss for the month so far to 1.7%. The NSE Nifty 50 Index also advanced 1.6% yesterday.
Lenders contributed most to gains in both measures with expectations of central bank keeping interest rates on hold at close to a record low.
The policy announcement, slated for Thursday, was rescheduled today over a possible lack of a quorum in the Monetary Policy Committee.
“With low interest rates globally, equities continue to have an edge over other asset classes,” said Kranthi Bathini, an investment adviser at WealthMills Securities Pvt in Mumbai.
An increase in coronavirus recoveries is also buoying sentiment, he said.
India’s economy is headed for its deepest recorded contraction, while coronavirus cases topping 6mn are the second highest in the world.
About 5mn people have recovered from the virus and the pace of weekly new infections is slowing, data shows.
Sovereign Indian bonds declined ahead of an announcement of the government’s second-half borrowing plan on Wednesday.
The yield on 10-year government bonds rose 2 basis points to 6.06%, while the rupee weakened 0.2% to 73.7850 per US dollar.
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