Bloomberg, Reuters Mumbai
Indian stocks rose, tracking broad gains in Asia, as investors digested the final US presidential debate while also assessing the quality of local earnings.
The S&P BSE Sensex advanced 0.3% to 40,685.50 in Mumbai, within 1.4% of erasing its year-to-date loss. For the week, the gauge has gained about 1.8%, its third weekly rise in four.
The NSE Nifty 50 Index climbed 0.3% yesterday.
A reopening of India’s economy as new virus infections decline, and a pick-up in foreign inflows have brought the Sensex closer to levels last seen before the coronavirus outbreak.
However, some fund managers are wary about how far earnings have recovered from the world’s strictest lockdown.
“The market has come to pre-Covid levels, but earnings have declined over this period,” reducing the risk-reward, said Aneesh Srivastava, chief investment officer at Star Health and Allied Insurance Co. “We are staying away for now, but we are also keeping an eye on earnings.”
Seven of the 14 Nifty 50 firms that have so far posted quarterly results either beat or met analyst estimates, while an equal number have missed. Tech Mahindra Ltd and Nestle India Ltd are among companies announced earnings.
The rupee weakened 0.1% to 73.6050 per US dollar, while the yield on 10-year government bonds fell seven basis points to 5.84%.
Thirteen of 19 sector indexes compiled by BSE Ltd advanced, led by a gauge of auto stocks
Maruti Suzuki India Ltd contributed the most to the Sensex gain and had the largest move, rising 4.4%.
Meanwhile the rupee depreciated 7 paise to close at 73.61 (provisional) against the US dollar yesterday even as the domestic equity market was trading with significant gains. At the interbank forex market, the local unit opened weak at 73.62 against the US dollar and remained stressed for majority of the session before closing at 73.61, a loss of 7 paise over its previous close. During the session, the local unit witnessed an intra-day high of 73.46 and a low of 73.67 against the US dollar.
It had settled at 73.54 against the greenback in the previous session on Thursday.
According to forex dealers, positive sentiment in the domestic equity market and weakness in US dollar overseas restricted the rupee’s fall.
Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services said, “As we get close to the US election day, uncertainty over the outcome will keep USD-INR spot afloat.“We expect 73.40 to act as an immediate support, only a break will weigh towards 73.20 zone, while, 73.90-74 will act as an immediate resistance.”
On the domestic equity market front, the BSE benchmark Sensex was trading 151.26 points higher at 40,709.75 and the broader NSE Nifty rose 45.25 points to 11,941.70.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21% lower at 92.75.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,118.46 crore on Thursday, according to exchange data.
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