India’s equity market corrected higher on Tuesday, May 22, breaking a five-day losing streak. Investors focused on quarterly earnings. Automakers enjoyed the strongest demand. However, unstable political situation related to the outcome of the elections in Karnataka, limited risk appetite. Recapping the benchmarks, the Nifty 50 edged up 0.19% to 10,536.70, while the BSE Sensex closed 0.10% higher at 34,651.24. By 10:15 GMT, the USD/INR traded down 0.10% to 68.045, while EUR/INR advanced 0.17% to 80.4467. The 10-year government bond yield remained unchanged at 7.810%. As noted above, auto makers outperformed the broader market amid news that China intends to cut tariffs on car imports effective July 1. Thus, Maruti Suzuki India and Bajaj Auto advanced 1.6% and 3.4%, respectively. Meanwhile, Indian Oil shed 2.3% as its net profit in Q4, totaling INR 52.18 bn (USD 766.82 mn), falling short of INR 56.42 bn expected. Another O&G representative Hindustan Petroleum retreated 0.3% ahead of the release of quarterly earnings. The daily chart shows that a three black crows pattern has shaped up on the BSE Sensex after the benchmark broke out of the lower bound of a falling wedge. Given that the Slow Stochastic Oscillator has approached oversold territory, further downside potential is limited. $SENSEX, S&P BSE SENSEX INDEX / D