On Thursday, May 12, Indian benchmarks closed moderately higher. The financial sector outperformed the broader market on news that the Indian parliament signed the country’s first bankruptcy law. The law helps speed up bankruptcy procedures for troubled companies and allows banks to recover debt sooner, while until now legal proceedings could last a long time. The adoption of the law is deemed a political victory for Prime Minister Narendra Modi, who had promised to improve business conditions in the country. Data on Indian inflation and industrial output are due out today. Industrial output is expected to have increased 2.5% y-o-y in March compared to a 2% rise in February. The Nifty 50 climbed 0.66% to 7,900.40, while the BSE Sensex rose 0.75% to 25,790.22. Among the blue chips, Dr. Reddy’s Labs, ICICI Bank, Vedanta, and Hindalco outperformed the broader market, while Mahindra & Mahindra, Hindustan Unilever, Maruti Suzuki and some other companies were out of luck. USD/INR ticked up 0.15% to 66.663. The 10-year bond yield fell 0.04% to 7.425%. Among lenders, ICICI Bank and SBI benefited the most from news about the adoption of the bankruptcy law, adding 3.5% and 1.9%, respectively. Pharmaceutical company Dr Reddy’s Laboratories picked up 3.6% after its earnings results for the quarter ended March were released. The company’s net profit for the quarter plunged 85.6%. Meanwhile, investors were encouraged by the fact that its net sales in the last financial year accelerated 4.4%. Drugmaker Tyche Industries soared 19.9% after having received US Food and Drug Administration approval for its active pharmaceutical ingredients-manufacturing facility located in Kakinada, Andhra Pradesh. From a technical standpoint, another bullish flag has taken shape on the daily chart. Afterashortpause, moreupsidecanbeexpected. $SENSEX, S&P BSE SENSEX INDEX / 1440