Sensex Rebounds as Financials Advance

India’s BSE Sensex rose about 0.4% to 76,889 on Thursday, led by gains in financials and rebounding from the previous session’s losses after the benchmark hit a more than one-month low. Investor sentiment was also supported by a surge in foreign-currency deposits from non-resident Indians, with over $60 billion mobilised in the final 10 days of the RBI’s swap scheme, taking the total to about $136 billion. The inflows bolstered India’s FX reserves and gave the RBI greater room to support the rupee, easing pressure on local assets. However, gains in equities were capped by elevated crude oil prices and renewed tensions in the Middle East. Investors are also watching global interest-rate expectations, including the possibility of a US Federal Reserve rate hike. Financials led the gains, with HDFC Bank, ICICI Bank, State Bank of India, and Axis Bank rising 1.1%–1.9%. Other notable gainers across sectors included Milky Mist (1.2%), Netweb (4.3%), Anant Raj (7%), and Welspun Corp (3.1%).




