India’s Sensex Gains as Central Bank Signals More Easing Ahead

(Bloomberg) — Indian stocks rose after the central bank signaled more policy easing ahead and announced a slew of liquidity steps to support the economy while keeping rates unchanged on Friday.

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A pedestrian walks past an electronic ticker board indicating latest figures for the S&P BSE Sensex at the Bombay Stock Exchange (BSE) building in Mumbai, India, on Monday, May 20, 2019. Indian stocks rallied the most in more than three years and the rupee and sovereign bonds climbed after exit polls signaled Prime Minister Narendra Modi’s ruling coalition is poised to retain power.

The S&P BSE Sensex climbed 0.6% to 40,434.50 as of 10:55 a.m. in Mumbai, while the NSE Nifty 50 Index advanced 0.5%. Both measures are set for their best week since early June and close to erasing year-to-date losses.

“An accommodative stance remains positive for sentiment,” said Kranthi Bathini, an investment adviser at WealthMills Securities Pvt. in Mumbai, before the decision.

Accommodative monetary policy along with signs of a recovery in the economy may benefit local companies as India heads into its annual festive season, while the central bank also signaled inflation is easing. The Monetary Policy Committee left the benchmark repurchase rate at 4%, as predicted by all 32 economists in a Bloomberg survey.

© Bloomberg
Bombay Stock Exchange (BSE) signage is seen through foliage in Mumbai, India, on Thursday, Jan. 23, 2014. Indian stocks dropped for the first time this week as some investors bet the rally in the benchmark index to a record has outpaced the outlook for earnings growth.

The 10-year bond yield slipped eight basis points to 5.94%, while the rupee was up 0.1% to 73.1750 per U.S. dollar.

With the earnings season underway, IT firms Wipro Ltd. and Infosys Ltd. may give some guidance on the outlook when they report results next week.

The Numbers

Six of 19 sector indexes compiled by BSE Ltd. rose, led by a gauge of finance companies.Housing Development Finance Corp. contributed the most to the Sensex advance, increasing 3.4%

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