India’s Sensex rises as investors assess economic outlook

Bloomberg

India’s stock benchmark rose, rebounding from its lowest close in more than two weeks, as investors assessed the extent that the coronavirus outbreak may affect the economic outlook.
The S&P BSE Sensex Index climbed for the first day in five, adding 1.1% to close at 41,323 in Mumbai. The NSE Nifty 50 Index posted the same gain.
India’s government plans to hold talks with business groups to assess the potential economic impact of coronavirus-triggered disruptions caused by factory shutdowns in China. Meanwhile, the central bank is injecting funds into the financial system to boost loan growth in an economy set for its weakest expansion in 11 years.
Elsewhere, even as the telecom sector’s woes continued, Vodafone Idea Ltd surged as much as 50% — the most on record. This came in advance of a meeting by India’s cabinet that may discuss the company’s overdue payments, according to a media report. The stock isn’t part of the Sensex or Nifty indexes.
The rebound is from “value-buying” after a coronavirus-induced sell-off on February 18, said Umesh Mehta, head of research at Mumbai-based Samco Securities Ltd.
“People are assessing the economic situation after the initial sell-off.”
All 19 sector indexes compiled by BSE Ltd advanced, led by a gauge of energy shares.
Hindustan Unilever Ltd’s 2.7% gain was the biggest among Sensex stocks, while Sun Pharmaceutical Industries Ltd dropped the most, falling 1.3%.