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India's Nifty 50 Hits Record High; Auto, Energy Stocks Jump

BENGALURU (Reuters) - India’s Nifty 50 index hit an all-time high on Wednesday, boosted by energy stocks, while automobile and telecom shares climbed on local media reports that the government was considering incentives and financial relief for the sectors.

The blue-chip NSE Nifty 50 index was up 0.46% at 17,459.05 by 0510 GMT, having hit a record high of 17,641.50 earlier. The benchmark S&P BSE Sensex rose 0.47% to 58,579.86.

Energy stocks added more than 1%, driven by Oil and Natural Gas Corp’s 5.5% jump to a near two-year high. The stock was also the top gainer on the Nifty 50.

Auto stocks advanced 0.7% after local media reported that the government would likely consider production-linked incentive scheme for specific segments of the sector in a cabinet meeting on Wednesday.

The incentive, however, would only provide temporary respite, said Siddharth Purohit, a research analyst at SMC Global Securities, as the sector continues to face risks from a global chip shortage and tepid demand.

Debt-laden telecom company Vodafone Idea rose about 3% and bigger rival Bharti Airtel gained 1.8% on reports that the cabinet would likely consider financial relief measures for the telecom sector in its meeting on Wednesday.

Telecom companies would benefit from such relief measures in the long term, Purohit said, adding that expectations of a hike in tariffs and a reduction in debt in the future would also help.

Meanwhile, shares of Zee Entertainment Enterprises extended their rally to rise as much as 15%. On Tuesday the stock soared 40% ahead of a shareholders meeting.

In broader Asia, shares fell as weak Chinese economic data sparked worries of slowing growth globally.

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

Source: Reuters

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