BENGALURU: Indian shares rose on Monday, led by state-owned banking stocks on hopes that the government may infuse some capital into the sector as early as the third quarter, with gains in Asian markets aiding sentiment.
The broader NSE Nifty 50 index rose 1% to 11,155 and the S&P BSE Sensex climbed 0.9% to 37,732.78 by 0452 GMT. Both the indexes fell nearly 4% last week, marking their worst week since early-May.
“Expectations of (government) stimulus is keeping the market positive,” AK Prabhakar, head of research at IDBI Capital said, adding that lifting sentiment was a further opening up of the economy after West Bengal allowed cinema halls to operate from October with restrictions.
Shares in India’s top cinema chains PVR Ltd and INOX Leisure gained 8% and 6%, respectively.
The public sector bank index gained 2% and the banking index rose 1.8% after a report https://bit.ly/30fQcb0 said that the finance ministry may provide capital support to some public sector banks in the third quarter.
Meanwhile, a Moneycontrol report on Friday said the Indian government was set to announce a stimulus package ahead of the festive season aimed at creating jobs and pushing demand to lift the battered economy.
Financial shares will remain on investors’ radar as India’s top court is set to hear a case on waiving interest rates on loans under a moratorium later in the day.
Shares of Lakshmi Vilas Bank Ltd fell as much as 6.25% after its shareholders on Friday rejected https://bit.ly/336xGDN the reappointment of seven directors, including the managing director and chief executive, and India’s central bank appointed https://bit.ly/3cBw3B8 a committee to run the bank.
The Nifty metals index rose 1.7% on expectations of strong demand from top importer China.
In global markets, MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.6%.
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