Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

India Stocks Rebound After Worst Day as Mobius Flags Bargains

Published 24/03/2020, 05:18
Updated 24/03/2020, 05:52
India Stocks Rebound After Worst Day as Mobius Flags Bargains

India Stocks Rebound After Worst Day as Mobius Flags Bargains

(Bloomberg) -- Indian stocks gained, rebounding from record slides Monday, as some investors began picking out stocks that may have fallen too far, too quickly, even as much of the world’s second-most populous nation goes into lockdown in an effort to contain the spread of the deadly coronavirus.

The S&P BSE Sensex Index advanced 1% to 26,239.96 as of 9:47 a.m. in Mumbai, and the NSE Nifty 50 Index also rose 1%. Both gauges fell 13% in the previous trading session -- their biggest ever one-day decline -- as the country’s coronavirus-linked cases surpassed 400. The MSCI Asia Pacific Index gained 3.4% on Tuesday as regional stocks rebounded.

Watch Mobius video: Our Excitement About India Has Not Diminished at All

Prime Minister Narendra Modi and state leaders over the weekend imposed an almost complete lockdown, which will probably worsen an economy already growing at its slowest pace in more than a decade. India has 467 virus cases so far, including seven deaths. But experts say the country could be on the same trajectory as Italy, where the outbreak quickly escalated, causing hospitals to overflow.

Read more: World’s Biggest Lockdown Prompts Tycoons to Seek India Rate Cuts

Oxford Economics has slashed India’s growth forecast for January to April to 3%, a number not seen even during the worst of the global financial crisis, even as the government weighs the possibility of a fiscal stimulus to support the economy. Meanwhile, the central bank last week announced measures to boost liquidity while holding back from following global peers with a rate cut.

In an effort to support the domestic market, the Securities and Exchange Board of India has lowered the compliance burden on market participants, including extending risk management framework deadlines for mutual funds. The regulator last week raised margin requirements and capped derivatives exposure for a month in a bid to subdue market volatility.

Foreign investors have sold $6.7 billion worth of Indian equities in March, on track for a record monthly withdrawal, according to data compiled by Bloomberg dating back to 1999.

Strategist View

“It’s a great time to pick up bargains in markets like India,” Mark Mobius, co-founder and partner at Mobius Capital Partners LLP, said in an interview with Bloomberg Television. “Many companies around the world, not only in India, are not going to be harmed that much by what is happening now.”

The Numbers

  • Twelve of the 19 sector sub-indexes compiled by BSE Ltd. rose, led by a gauge of IT stocks.
  • Infosys Ltd. was the top gainer on the Sensex index, up 7.5%, and gave the benchmark its biggest boost.
Related Stories

  • World’s Back Office Scrambles to Stay Online as India Locks Down
  • Top Indian Gold Seller Shuts Shops as Industry Grinds to a Halt
  • Indian Banks Seek Lesser Dollars Than on Offer in RBI’s Swap
©2020 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.