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Indian Shares Scale Peaks, Eye 2% Weekly Jump

BENGALURU (Reuters) - Indian shares touched all-time highs on Friday and were on track to post a more than 2% weekly gain, as banking stocks jumped a day after the country’s finance minister set out details for the establishment of a bad bank.

The blue-chip NSE Nifty 50 index rose 0.78% to 17,766.25 by 0452 GMT, having hit a record of 17,771.85 earlier. The benchmark S&P BSE Sensex was 0.84% higher at 59,636.71 after scaling a peak of 59,662.88.

A sub-index for banking stocks rose for a fourth day and touched a record high, after the government announced a 306.00 billion rupees ($4.16 bln) guarantee programme for securities to be issued by a newly incorporated “bad bank.”

Benefits from the government support announced for the telecom and banking sectors in the last few days would also spill over to technology and retail sectors, and this was driving the broader positive sentiment, said KK Mittal, an investment advisor at Venus India.

Consumer goods stocks jumped about 1% to a record high, with Jubilant Foodworks advancing more than 3%.

Auto stocks rose to their highest in over two months, with auto parts maker Tube Investment of India rising over 3%.

Meanwhile, Biocon Ltd added over 4% after the biopharmaceutical company’s unit said it would offer a 15% stake to vaccine giant Serum Institute Life Sciences, at a post-money valuation of about $4.9 billion.

Financial services provider Poonawalla Fincorp fell about 5%, a day after the company’s managing director resigned. On Wednesday, India’s market regulator had banned him and seven others from the securities market for alleged insider trading.

($1 = 73.5200 Indian rupees)

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

Source: Reuters


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