(Bloomberg) -- 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.
Read: Record Stimulus Slows Credit Downgrades of Indian Companies
“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.
Read: Early Signs of India Economic Recovery Wane as Virus Surges
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%.
The Numbers
- Nine of the 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of metal companies
- HDFC Bank Ltd. contributed the most to the Sensex advance, increasing 1.6% while Axis Bank Ltd. had the largest gain, rising 4%
- Titan Co Ltd. was the biggest drag on the index and had the biggest drop, declining 3.7% after the company reported a quarterly net loss that was wider than analysts' consensus estimate.
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