Indian stocks hit highs, envision weekly 2% jump as banks extend rally



A broker reacts by trading on his computer terminal at a brokerage firm in Mumbai, India on February 26, 2016. REUTERS / Shailesh Andrade / File Photo

BENGALURU, Sept. 17 (Reuters) – Indian stocks hit all-time highs on Friday and were on track to post a weekly gain of more than 2%, as bank stocks surged a day after the country’s finance minister announced the details of the establishment of a bad bank.

The blue chip NSE Nifty 50 (.NSEI) index rose 0.78% to 17,766.25 at 0452 GMT, after hitting an earlier high of 17,771.85. The benchmark S&P BSE Sensex (.BSESN) was up 0.84% ​​to 59,636.71 after peaking at 59,662.88.

A sub-index for bank stocks (.NSEBANK) rose for a fourth day and hit an all-time high, after the government announced a guarantee program of 306.00 billion rupees ($ 4.16 billion) for securities to be issued by a newly formed “bad bank”.

The benefits of government support announced for the telecommunications and banking sectors over the past few days would also trickle down to the tech and retail sectors, fueling a broader positive sentiment, KK said. Mittal, Investment Advisor at Venus India.

Consumer goods stocks (.NIFTYFMCG) jumped around 1% to a record high, with Jubilant Foodworks (JUBI.NS) rising more than 3%.

Auto shares (.NIFTYAUTO) hit their highest level in more than two months, with auto parts maker Tube Investment of India (TBEI.NS) rising more than 3%.

Meanwhile, Biocon Ltd (BION.NS) added more than 4% after the biopharmaceutical company’s unit announced it would offer a 15% stake to vaccine giant Serum Institute Life Sciences, at a post valuation -currency of about 4.9 billion dollars.

Financial services provider Poonawalla Fincorp (POON.NS) fell around 5%, a day after the company’s chief executive resigned. India’s market regulator on Wednesday banned him and seven others from the securities market for suspected insider trading. Read more

($ 1 = 73.5200 Indian rupees)

Reporting by Soumyajit Saha in Bengaluru; edited by Uttaresh.V

Our Standards: Thomson Reuters Trust Principles.

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