India stocks rebound as grim services data boost stimulus bets

Bloomberg

Indian stocks rebounded from their lowest level in almost two weeks as data showing record contraction in the nation’s services industry in April underlined the need for more support measures from the government.
The S&P BSE Sensex jumped 0.9% to 31,728.72 as of 11:47 am in Mumbai, reversing losses of as much as 0.9%. The NSE Nifty 50 Index rose 0.8%. The gauges declined more than 6.5% in the past two sessions after Prime Minister Narendra Modi Saturday extended stay-at-home orders for two weeks from May 4, while easing some
restrictions.
India’s services purchasing managers index plunged by 43.9 points to 5.4 in April, hitting single digits for the first time and signalling a massive contraction in the economy during a 40-day lockdown. The government has committed less than 1% of GDP to contain the economic damage from the pandemic, prompting economists and industrialists to pitch for a bigger stimulus package.
The Sensex and the Nifty gauges logged their biggest monthly gains since 2009 in April, and have rebounded more than 20% from lows touched a month earlier. India has so far reported 49,400 Covid-19 infections and 1,693 deaths, data compiled by Johns Hopkins University show.
Sixteen of 19 sub-indexes compiled by BSE Ltd. rose, led by a gauge of financial stocks. Hero MotoCorp Ltd. and ICICI Bank Ltd. were among the top gainers on the benchmark index.
ITC Ltd. and Axis Bank Ltd. were among the top losers on the Sensex Index after the Economic Times reported that the government intends to raise 220 billion rupees from selling its stakes in the two companies.
India’s services industry grinds to halt, sending GDP down 15%. The South Asian country aims to raise 220 billion rupees from ITC, Axis stake sale, reports the Economic Times.