(Bloomberg) -- Indian equities gained, set to snap the longest rout in more than two months, as investors sought out value after key gauges fell to more than a two-month low.
The benchmark S&P BSE Sensex Index rose 0.5% to 38,053.67 as of 9:36 a.m. in Mumbai, while the NSE Nifty 50 Index added 0.6%. Both gauges marked their longest losing streaks and lowest closes since mid-May in the previous session. Indexes may be volatile as monthly derivative contracts expire later today.
The central bank has said it detected “signs of fragility” in some financial firms and is monitoring to prevent contagion and a potential surge in bad debt. Budget measures to impose higher taxes on the wealthy and some foreign funds spooked investors last week.
Of the 13 Nifty companies that have reported earnings so far, nine have either met or exceeded analyst estimates. Tata Motors Ltd., Bajaj Finance Ltd. and Bajaj Finserv Ltd. will announce earnings later today.
Strategist View
- “The focus of investors would be on Q1FY20 earnings season, as it is likely to induce stock specific volatility,” said Ajit Mishra, vice president of research at Religare Broking Ltd.
- Seventeen of the 19 sector sub-indexes compiled by BSE Ltd., led by a gauge of telecom stocks.
- Twenty-three of the 31 Sensex members and 39 of the 50 Nifty stocks advanced.
- IndusInd Bank Ltd. rose the most on the benchmark, while Oil and Natural Gas Corp. was among the biggest losers.
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