Indian stocks surge

Bloomberg

Indian stocks began the week on the front foot after early indicators of economic growth pointed to a recovery and the progress of the rainy season fuelled expectations of healthy demand in nation’s rural areas.
The S&P BSE Sensex climbed 1% to 36,388.5 as of 9:58 am in Mumbai, set for the highest level since March 6. The NSE Nifty 50 Index advanced 1.2%.
India’s Services PMI climbed to 33.7 in June, advancing for a second month after record low of 5.4 in April. A reading below 50 signals contraction in activity. Sufficient rain and relatively less exposure to the coronavirus is boosting purchasing power in the hinterland, with Escorts Ltd. reporting “unprecedented” demand for its tractors last month.
The sensex is headed for a four-month high, even as India overtook Russia to become the country with third-largest
caseload of Covid-19 infections.

“The monsoon has been good and that is helping sales of fertilizer, two-wheelers and tractors,” said A. K. Prabhakar, head of research at IDBI Capital Markets in Mumbai.
The Sensex is headed for a four-month high, even as India overtook Russia to become the country with the third-largest caseload of coronavirus infections. Only the US and Brazil now have more infections than India. Prabhakar is advising clients to hold 30-40% of their assets in cash, as he expects there will be opportunities to buy stocks at lower prices.
Yield on the benchmark 10-year government bond was little changed at 5.84%. The rupee rose 0.1% to 74.6138 per dollar.