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Bloomberg
Indian stocks rise after a volatile start as the central bank’s new monetary policy committee began meeting ahead of a decision later this week.
The S&P BSE Sensex advanced 0.8% to 39,871.03 as of 10:47 am in Mumbai, after slipping as much as 0.3%. The NSE Nifty 50 Index added 0.4%. Gains were driven by India’s most valuable company, Reliance Industries Ltd., which said it will get a $750 million investment in its retail unit.
The interest rate decision due on Friday is likely to see borrowing costs held at a record low as inflation remains elevated, potentially benefiting lenders’ net interest margins. Meanwhile, signs of economic revival may bode well for consumer spending as India heads into its seasonal festive season.
“If we get more liquidity, whether directly or indirectly from the RBI, it could lead to a rally in financial stocks,†said Abhimanyu Sofat, head of research at IIFL Securities Ltd. in Mumbai. The yield on the benchmark 10-year government bond falls by one basis point to 6.02%, while the rupee weakened 0.1% to 73.5350 against the US dollar.
Tata Consultancy Services Ltd. is scheduled to kick of the quarterly earnings season with its results today, with investors watching for commentary on global demand, new deals and a share buy-back proposal.