India stocks flirt with bull territory ahead of earnings reports

Bloomberg

India stocks rose, with the benchmark gauge set to close in bull territory, ahead of earnings reports that may give some insight into the outlook for companies under lockdown in the world’s second-most populous country.
The S&P BSE Sensex advanced 2.5% to 31,450.11 as of 10:06 am in Mumbai, while the NSE Nifty 50 Index climbed by the same magnitude. Both measures have rebounded more than 20% from a low on March 23, an increase seen as a technical bull market. Indian markets were closed on Tuesday for a national holiday.
India’s quarterly corporate earnings season kicks off on Wednesday with Wipro Ltd. scheduled to announce its results after market hours. Prime Minister Narendra Modi extended a nationwide lockdown through May 3 as India steps up its fight to contain the spread of the coronavirus among its 1.3 billion people. The prolonged lockdown is expected to result in a 25% drop in gross domestic product from a year earlier for the current quarter, according to Bloomberg Economics.
“There’s a good number of sectors still operating during lockdown period,” said Sanjay Sinha, who oversees investments at Mumbai-based Citrus Advisors. “What is important is management commentary on their outlook for business in FY21. The earnings season also provides an opportunity for a fact check on the assumptions of decline in activity” during the shutdown.
The Sensex index surged last week after fewer virus cases were reported in some global hotspots. India currently has 11,487 confirmed cases and 393 deaths linked to the global health crisis.
All 19 sector sub-indexes compiled by BSE Ltd. gained, led by a gauge of basic materials companies
Reliance Industries Ltd. contributed most to the index advance with a 3.1% increase, Sun Pharmaceutical Industries Ltd. jumped the most, rising 4.7%; Kotak Mahindra Bank Ltd. was the biggest loser and the biggest drag on the index, slipping 1.3%.