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Indian Shares Rise on Upbeat Global Cues, Reliance Boost

BENGALURU, Sept 8 (Reuters) - Indian shares rose on Tuesday, with Reliance Industries Ltd leading the charge, as stronger Asian equities and a report of further stimulus for India’s virus-hit economy bolstered risk appetite.

The blue-chip NSE Nifty 50 index rose 0.31% to 11,390.50, while the benchmark S&P BSE Sensex was up 0.42% at 38,580.00 by 0448 GMT. Both indexes fell more than 2.6% last week.

Conglomerate Reliance Industries was the top boost to the Nifty, gaining as much as 1.5%. Media reports said the Mukesh Ambani-controlled company was in talks with players such as Facebook Inc and private equity firms Silver Lake and KKR to invest in its retail arm.

Further boosting sentiment, the Mint newspaper said on Monday a second round of stimulus measures for the Indian economy is on the table, as the central government monitors how different sectors are recovering.

In the broader market, Asian shares and U.S. futures rose as investors looked to whether high-flying U.S. technology stocks could recover from their recent rout.

“Oversold markets in the short term, global cues turning positive and a positive reaction to (the RBI’s guidelines on restructuring loans) are helping markets,” said Sanjiv Bhasin, director at India Infoline, but added that there were some worries over renewed tensions at the country’s disputed border with China.

The Nifty bank index rose 0.21%. The Reserve Bank of India on Monday outlined guidelines for restructuring loans for Indian banks, as the sector braces for a surge in bad loans amid the COVID-19 crisis.

The Nifty IT index rose 1.55%, with IT majors Infosys Ltd and Tata Consultancy Services Ltd rising as much as 2.3% and 1.7%, respectively.

Meanwhile, weapons manufacturer Bharat Dynamics dropped as much as 13.6% after the Indian government said it would sell a stake in the company at a discount.

(Reporting by Anuron Kumar Mitra in Bengaluru; Editing by Devika Syamnath)

Source: Reuters

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