Sensex Extends Gains to Second Day

India’s BSE Sensex rose about 0.3% to 72,606 on Tuesday, extending gains for a second day as banks and financial stocks advanced on upbeat quarterly updates, while investors awaited the Reserve Bank of India’s policy decision, with a 25-basis-point rate hike widely expected. Banking stocks led gains, with Kotak Mahindra Bank gained about 3.5% after reporting 24.7% year-on-year growth in net advances, while Axis Bank rose around 1.5% on a 20.7% increase in deposits and 22.7% growth in gross advances. Meanwhile, Trent surged about 9.3% after the apparel retailer projected a 23% year-on-year increase in standalone revenue for the September quarter. Sentiment was also supported by lower oil prices and reduced expectations of aggressive US monetary tightening following weaker US jobs data. However, the rupee remained under pressure as higher US Treasury yields and a stronger dollar weighed on the currency, with the Reserve Bank of India intervening to slow its decline.