(Bloomberg) -- Indian equities rose, tracking global markets, as the price of crude oil, the nation’s biggest import, steadied after the U.S. and Iran appeared to be stepping back from a military conflict.
The S&P BSE Sensex Index advanced 1.1% to 41,247.01 as of 9:33 a.m. in Mumbai. Global stocks rallied after U.S. President Donald Trump on Wednesday said that he would impose new sanctions on Iran while offering the country a diplomatic opening. The NSE Nifty 50 Index also rose by 1.1%.
India’s monthly factory output data, due Friday, along with earnings from Infosys Ltd. marking the start of quarterly reporting season, may give investors an insight into the corporate state of health at a time when India’s economy is on track for its slowest growth since 2009.
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India’s gross domestic product will expand 5% in the year through March 2020, a government agency said Tuesday. That would place the country, which was the world’s fastest-growing major economy in its last financial year, behind regional peers including China, Vietnam and the Philippines.
Strategist View
“The easing of tensions between the U.S. and Iran will help India equities at a time when most investors are expecting muted earnings growth,” said Chokkalingam G, founder of Equinomics Research & Advisory Pvt. in Mumbai.
The Numbers
- All of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of metal companies.
- IndusInd Bank Ltd. was the top gainer on the benchmark index, while Tata Consultancy Services Ltd. was the only one to fall.
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- India Eases Coal Mining Norms in Bid to Attract Investment