(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.
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.
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.
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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