(Bloomberg) — India stocks advanced, with the benchmark index heading for a weekly gain, as border tensions with China eased and the resumption of business activity buoyed sentiment.
The S&P BSE Sensex added 0.2% to 34,284.24 as of 10:20 a.m. in Mumbai after swinging between gains and losses at least five times. The measure is on course for a weekly advance of 1.4% and only its second month of gains this year. The NSE Nifty 50 Index rose 0.3% today.
After deadly border clashes with China this week, India said the two nations will join in a summit with Russia next week. The government is also proceeding with an auction of coal blocks for mining that it said would boost state revenues and create jobs. Reliance Industries Ltd was the biggest boost to both indexes after the company said it was net debt free after multiple rounds of investment and fund raising.
“Things are looking a little more favorable than before which shows government measures are working and some sectors, like auto, have started talking positively,” said Deven Choksey, a strategist at KRChoksey Investment Managers Pvt in Mumbai. “But nobody wants to carry the position back home at the end of the week.”
The yield on the most traded 6.45% 2029 bond fell three basis points to 5.99% while the rupee weakened 0.2% to 76.26 per U.S. dollar.
Seventeen of 19 industry sub-indexes compiled by BSE Ltd. advanced, led by a gauge of realty companiesBajaj Finance Ltd. was the top gainer on the Sensex by rising 2.9%, while Housing Development Finance Corp. was the biggest drag, declining 1.6%
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