India’s stocks are on the rise for the second day in a row.
On the Rise
The rise of India’s stock is mainly due to the relaxing of the country’s lockdown situation. This has given investors the push they needed to step up their purchasing. The investors have been purchasing riskier assets as the pandemic is seemingly easing.
The S&P BSE Sensex increased by one and a half percent. It closed at 31,836.08. The last time this level was achieved was mid March. The NSE Nifty 50 Index increased by 1.4%. Both of these extended Wednesday rallies of more than 2%.
One head of equity research offered some insight on these growths. He said that the volatility of stocks is currently high. He adds that this will continue for a few more weeks until they understand how the exit from the lockdown will take place.
Of the sub-indexes compiled by BSE Ltd., 13 out of 19 are on the climb. The leading companies are mostly in IT. Kotak Mahindra Bank Ltd. heads gains with an 8.6% increase. This is most likely the effect of their recent announcement that they plan to raise nearly $1 billion with a new share.
The Sensex company that fell the most was Titan Co. They lost 4.1%.
Quarterly earnings reports are on the way. Only four Nifty 50 companies have reported results so far. This is mainly due to the effect of the pandemic and the looming news of the extended lockdown. Bharti Infratel Ltd.’s report will be coming in later in the day.
Recently, India’s companies have sold a large amount of shorter-tenor bonds. This was triggered by the central bank infusing the local market with “cheap cash”. Apart from that, market regulators have eased rules to speedily raise money for a company.
With things going the way they are, India is heading for its first full-year contraction in four decades. The massive dip in oil prices is one of the only positive things currently happening to India as they are an oil importing country.