Key India Equity Gauges Eke Out Gains, Cap Worst July Since 2002
(Bloomberg) -- Key Indian equities indexes capped their worst decline for the month of July in 17 years, even as shares eked out gains on Wednesday.
The benchmark S&P BSE Sensex climbed 0.2% to 37,481.12 at the 3:30 p.m. close in Mumbai, easing its decline this month to 4.9%. The NSE Nifty 50 Index gained 0.3% to 11,118.00 and is down 5.7% in July.
Weak global cues, the slowing of the local economy and consumption, a new federal budget that has failed to provide stimulus while raising taxes on the rich, and an ongoing credit crisis among non-bank finance lenders have roiled investor sentiment. The key equity indexes have now slumped at least 7% from their all-time high closes in June.
Strategist View
“The near-term outlook isn't great for local equities and there's nothing really to get anyone excited,” said Andrew Holland, chief executive officer at Avendus Capital Ltd. in Mumbai.
“Markets have already priced the expected interest-rate cuts by the U.S. and local central banks, but at the same time they are also factoring that the local economy isn't going to turn around quickly,” he said.
The Numbers
- Fifteen of the 19 sector indexes compiled by BSE Ltd. gained, paced by a gauge of metal stocks.
- Twenty-two of the 31 Sensex members and 36 of the 50 Nifty companies advanced.
Yes Bank Ltd. rose 6%, the most among Sensex and Nifty members, halting a two-day decline. Rival Axis Bank Ltd. dropped 4.7% after it reported its net income for the June-quarter that missed analyst estimates.
- Coffee Day Enterprises Ltd. plunged 20% for a second day. Its founder V.G. Siddhartha, who went missing since Monday, was found dead. The stock fell the most on the S&P BSE 500 Index.
- Net incomes at 16 of the 25 Nifty companies that have reported earnings so far have either topped or matched analyst estimates, according to data compiled by Bloomberg.
- Overseas investors have pulled out $1.6 billion from local equities in July, poised for the highest outflow in nine months.
Analyst Notes/Market-Related Stories
Body of India Coffee Tycoon Found as Letter Hints at Debt Woes
Bond Comfort May Elude Yes Bank as Rating Cuts Delay Fundraising
Hero MotoCorp Cut to Neutral at Macquarie; PT 2,400 Rupees
To contact the reporter on this story: Ameya Karve in Mumbai at akarve@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Kurt Schussler
©2019 Bloomberg L.P.
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