India stocks set for second day of gains

Bloomberg

Indian stocks rose, set for a second straight day of gains, as investors bought riskier assets amid a partial easing of the nationwide lockdown and signs of the coronavirus outbreak easing globally.
The S&P BSE Sensex climbed 9% to 31,673.78 as of 1:19 pm in Mumbai, while the NSE Nifty 50 Index advanced by the same magnitude. Both measures are extending Wednesday rallies of more than 2%.
“Intra-day volatility is pretty high and that will continue to play over the next few weeks until we get clarity on how the exit from lockdown will work out,” said Amit Khurana, head of equity research at Dolat Capital Market Pvt. in Mumbai. “At this stage, everything is so uncertain.”
With the quarterly earnings season underway, four Nifty 50 companies have so far reported results, with few providing outlooks due to the uncertain trajectory of the coronavirus pandemic and extended shutdown.
Indian companies sold a record amount of shorter-tenor bonds this month as the central bank floods the market with cheap cash. The nation’s market regulator has eased rules to fast-track rights issues to help companies raise funds amid the pandemic. India is heading towards its first full-year economic contraction in more than four decades, with a collapse in crude prices one of the few bright spots for the oil-importing nation.
Sovereign bonds extended gains after the central bank announced another round of special debt operation next week. The yield on India’s benchmark 10-year bond fell 20 basis points to 6.02%, and the rupee strengthened 0.9% to 76.0013 per US dollar.
Kotak Mahindra Bank Ltd. contributed the most to the Sensex’s rise, leading gains with a 6.4% advance, after the bank on Wednesday said it plans to raise about $1 billion with a new share issue. Titan Co. dropped the most among Sensex companies, losing 3.6%.