Rising Indian Bank Stocks Show Market Looking Past Weak Quarter

  • Gauge of bank stocks up 3.2% in July vs 1.4% gain for Sensex
  • Lenders expected to post higher bad loans amid stalled growth
Photographer: Dhiraj Singh/Bloomberg
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Shares of India’s top lenders show investors are looking past what is expected to be a lackluster round of quarterly earnings reports and toward growth in loan demand as local economies reopen from the latest Covid-19 lockdowns.

A gauge of lenders has climbed 3.2% so far this month, outpacing the 1.4% gain in the benchmark S&P BSE Sensex, as shops and businesses reopened amid a declining trend in new coronavirus cases.