India’s stock benchmarks erase losses as investors assess economic revival

Bloomberg

India’s stock benchmarks erased losses as investors assessed a nascent economic recovery.
The S&P BSE Sensex added 0.1% to 46,289.58 as of 2:30 pm in Mumbai, while the NSE Nifty 50 Index advanced by the same magnitude. Both indexes earlier dipped as much as 0.9%. Asian equities were broadly lower as investors considered the prospects of further virus-related business
restrictions.
“We don’t see potential for material gains from here as the best case scenario is factored into the current valuations,” said Amit Khurana, head of research at Dolat Capital Market Ltd. in Mumbai. “The market is now more at the top of our range.”
Foreign investors have poured about $20 billion into Indian equities this year, the most since 2012, helping drive key gauges to new highs. That’s even as the
nation has the world’s
second-highest coronavirus caseload. Signs the economy is crawling back from a collapse in activity have, however, stirred optimism.
Inflation slowed more than expected in November, a report showed after markets closed on Monday, while trade data due may provide insights as to whether lockdowns abroad are continuing to hamper demand for Indian exports.
The yield on the benchmark 10-year government bond was little changed at 5.89% while the rupee weakened 0.1% to 73.6488 against the US dollar.
Eleven of 19 sector sub-indexes compiled by BSE Ltd. rose, with a gauge of consumer durable companies gaining the most and half the constituents of the 30-member Sensex index advanced.
Meanwhile Housing Development Finance Corp Ltd. gave the biggest boost, and added 1.9%, Bajaj Finance Ltd. saw the steepest rise, and gained 4.4%.