India Stocks Climb into Bull Zone Before Unscheduled RBI Address

(Bloomberg) -- India stocks rose, with the benchmark gauge set to close in bull territory, ahead of an unscheduled speech by the central bank’s governor amid a prolonged nationwide lockdown aimed at slowing the spread of coronavirus in the country.The S&P BSE Sensex climbed 3.6% to 31,690.40 as of 9:17 a.m in Mumbai, taking gains from a March 23 low to more than 20%, while the NSE Nifty 50 Index also advanced 3.2%. Both gauges have climbed into and out of a zone seen as a technical bull market in last week’s volatile trade.“Investors are expecting the governor to address the need for a good package for state-owned banks, which can then support private sector lenders with funding,” said Prakash Pandey, who oversees investments at Plutus Advisors and Consulting Pvt. in Noida, New Delhi. “That will help ease the fear of defaults in the banking system, which is very high.”Read: RBI to Make Unscheduled Address Ahead of Bigger India Debt SaleThe Reserve Bank of India didn’t disclose details of Governor Shaktikanta Das’s address, which will be broadcast on YouTube at 10 a.m. local time. The RBI executed an emergency rate cut last month, and also pledged to provide $50 billion of liquidity. An auction of 200 billion rupees ($2.6 billion) of bonds is scheduled later today. The steps have helped reduce the perceived default risk for India’s banking sector from a six-year high, with the nation set for its first annual contraction in four decades.India’s earnings season is in full swing, with HDFC Bank Ltd., India’s most valuable lender by market capitalization, scheduled to release quarterly results on Saturday. Asia’s largest software outsourcing provider, Tata Consultancy Services Ltd., yesterday said it’s confident of achieving its long-term profitability model even as quarterly profit was flat. At the same time Wipro Ltd. on Wednesday declined to give an outlook until conditions become clearer.The NumbersAll 19 sector sub-indexes compiled by BSE Ltd. rose, led by a gauge of real estate firms.IndusInd Bank Ltd.’s 7.2% advance was the biggest on the Sensex, with all constituents gaining, while HDFC Bank Ltd. gave it the biggest boost.Related StoriesStock Investors Prize Companies With Less Debt in India LockdownBanks That Skirted India’s Bad-Loan Trap Can’t Escape a LockdownIndia Wants Defense Firms to Make Medical Gear for Virus BattleFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P. Read More...

(Bloomberg) — India stocks rose, with the benchmark gauge set to close in bull territory, ahead of an unscheduled speech by the central bank’s governor amid a prolonged nationwide lockdown aimed at slowing the spread of coronavirus in the country.

The S&P BSE Sensex climbed 3.6% to 31,690.40 as of 9:17 a.m in Mumbai, taking gains from a March 23 low to more than 20%, while the NSE Nifty 50 Index also advanced 3.2%. Both gauges have climbed into and out of a zone seen as a technical bull market in last week’s volatile trade.

“Investors are expecting the governor to address the need for a good package for state-owned banks, which can then support private sector lenders with funding,” said Prakash Pandey, who oversees investments at Plutus Advisors and Consulting Pvt. in Noida, New Delhi. “That will help ease the fear of defaults in the banking system, which is very high.”

Read: RBI to Make Unscheduled Address Ahead of Bigger India Debt Sale

The Reserve Bank of India didn’t disclose details of Governor Shaktikanta Das’s address, which will be broadcast on YouTube at 10 a.m. local time. The RBI executed an emergency rate cut last month, and also pledged to provide $50 billion of liquidity. An auction of 200 billion rupees ($2.6 billion) of bonds is scheduled later today. The steps have helped reduce the perceived default risk for India’s banking sector from a six-year high, with the nation set for its first annual contraction in four decades.

India’s earnings season is in full swing, with HDFC Bank Ltd., India’s most valuable lender by market capitalization, scheduled to release quarterly results on Saturday. Asia’s largest software outsourcing provider, Tata Consultancy Services Ltd., yesterday said it’s confident of achieving its long-term profitability model even as quarterly profit was flat. At the same time Wipro Ltd. on Wednesday declined to give an outlook until conditions become clearer.

The Numbers

All 19 sector sub-indexes compiled by BSE Ltd. rose, led by a gauge of real estate firms.IndusInd Bank Ltd.’s 7.2% advance was the biggest on the Sensex, with all constituents gaining, while HDFC Bank Ltd. gave it the biggest boost.