India stocks rise as benchmark index forms ‘golden cross’

Bloomberg

Indian stocks climbed along with Asian equities, with the benchmark index forming a pattern that some analysts read as a sign of more gains to come.
The S&P BSE Sensex climbed 0.6% to 38,673.41 as of 10:17 am in Mumbai, making a ‘golden cross’ — a bullish indicator when the 50-day moving average rises above the 200-day line. The NSE Nifty 50 Index also
advanced 0.6%.
Indian equities capped their best week since July as investors looked past the rising coronavirus cases — infections topped the 3 million mark — amid better-than-expected earnings season and foreign stock purchases of $5.5 billion in August, set to be the most in 17 months.
For the technical pattern to spur further gains, large-cap stocks with a high weighting in the index would need to rise more than they have recently, said Rajat Nag, an independent analyst based in Kolkata. “You have to push this juggernaut on the upside,” he said.
The quarterly earnings season is nearly over, with 29 of the 47 Nifty 50 companies that have reported results beating or matching estimates.
Yield on benchmark 10-year government bond was little changed at 6.1%, while the rupee slipped 0.1% to 74.8925 against the US dollar.
Sixteen of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of banks.
Twenty-one Sensex shares rise while nine fall.
HDFC Bank Ltd. contributed most to the index advance with a 1.4% jump, Kotak Mahindra Bank Ltd. was the biggest winner with gains of 2.4%. HCL Technologies Ltd. dropped the most, falling 1.1%.