Indian shares take breather ahead of GDP data; Vodafone surges

Shares in Vodafone Idea Ltd jumped 25 per cent and hit an upper limit after a report that Google was eyeing a stake in the telecom firm. - Reuters

Dubai - On Thursday, the Sensex had ended 595.37 points - or 1.88 per cent - higher at 32,200.59.

By Staff Report

Published: Fri 29 May 2020, 11:11 AM

Last updated: Fri 29 May 2020, 1:29 PM

Indian shares paused on Friday after two days of strong gains, led by a pullback in banking stocks, ahead of the release of domestic GDP data, while heightened US-China tensions further weakened sentiment.
Banking stocks fell the most, following a nearly 10 per cent rise for the Nifty banking index in the past two sessions. The index was down 1.3 per cent, and index heavyweight HDFC Bank Ltd fell 1.8 per cent.
Gross domestic product (GDP) data is likely to show India's economy grew at its slowest pace in at least two years during the January-March quarter, as the COVID-19 pandemic hit already declining consumer demand.
The true effect of the pandemic, however, will likely be reflected only in India's April-June GDP data as the country went into a lockdown from late March.
Markets will await news about a further easing of lockdown curbs, which could help boost demand and support economic activity, analysts said.
"The lockdown and the government's views on its extension, or further relaxation will have more bearing on the minds of investors," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial in Mumbai.
"The only concern for markets is on the demand side. Will there be a demand recovery."
India has been gradually easing lockdown restrictions, and is expected to announce further guidelines in the coming days.
The NSE Nifty 50 index was down 0.22 per cent at 9,469.65 by 0450 GMT, while the S&P BSE Sensex fell 0.44 per cent to 32,057.13. The Nifty 50 had gained 5.1 per cent over the past sessions.
On Thursday, the Sensex had ended 595.37 points - or 1.88 per cent - higher at 32,200.59 and the Nifty settled at 9,490.10, up 175.15 points - or 1.88 per cent - from its previous close, as both indices extended gains to a second straight session backed by strong buying interest in banking shares.
Shares in Vodafone Idea Ltd jumped 25 per cent and hit an upper limit after a report that Google was eyeing a stake in the telecom firm.
Meanwhile Indian rupee extended the early gains and trading higher by 14 paise, amid recovery seen in the domestic equity market. It opened marginally higher at 75.71 per US dollar, to quote at Dh20.62 against previous close of 75.75. On Thursday the Indian currency ended marginally lower at 75.75 per dollar.
Meanwhile, other Asian stock markets pulled back, as investors awaited the United States' response to China tightening control over the city of Hong Kong. - With inputs from Reuters, business@khaleejtimes.com