Sunday, February 28

Indian shares rise over 1% on boost from Reliance, HDFC

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 Indian shares rose more than 1% on Tuesday as heavyweights Reliance and Housing Development Finance Corp provided a boost, with investors eyeing upbeat global cues ahead of a new presidency under U.S. President-elect Joe Biden.

The blue-chip NSE Nifty 50 index gained 1.2% to 14,447 and the benchmark S&P BSE Sensex climbed 1.2% to 49,118.09 by 0540 GMT. The Nifty and the Sensex had hit record highs last week before sliding in the past two sessions.

“A new U.S. president is taking over and a lot of positive announcements are coming in, which could keep the markets alive,” Rusmik Oza, head of fundamental research at Kotak Securities in Mumbai, said, referring to stimulus plans under Biden’s regime.

Janet Yellen, Biden’s nominee to run the Treasury Department, is also set to tell the Senate Finance Committee that the government must “act big” with its next coronavirus relief package.

Among individual shares and sectors, Reliance Industries, which has lost about 9% since October, rose 2%, while Housing Development Finance Corp gained 1.7%, making them the top boosts to the Nifty 50 index.

“High, delivery-based buying in these stocks indicate their improving prospects,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“Further ‘big stimulus’ (in the U.S.) along with the huge liquidity created by the unprecedented monetary stimulus can keep markets buoyant. But, there is a risk of bubble valuation,” he said.

Shares of Mindtree Ltd rose 2% after the information technology services provider reported strong December-quarter results. The country’s largest automaker Maruti Suzuki India Ltd jumped 2% on its decision to raise car prices.