MUMBAI: Indian shares closed higher on Monday, helped by the government’s plan to offer further tax reforms and more capital to finance the country’s infrastructure needs.
The NSE Nifty 50 index ended up 0.43% at 11,941.30, while the S&P BSE Sensex gained 0.36% to 40,309.53.
Stocks have been gaining steadily over the last few sessions, buoyed by positive global cues, a strong set of corporate results and expectations of a better third quarter.
Metals stocks were the top gainers, with the Nifty sub-index rising 3.14%. Meanwhile, the Nifty state-owned bank index climbed 0.7%.
Shares of Bharti Infratel Ltd surged as much as 7.48%. The stock closed up 6.20% and was the top gainer on the Nifty.
Zee Entertainment was the top loser with a 4.33% drop.
Modi said India is committed to improving its tax regime, according to media reports on Sunday. Meanwhile, in a joint statement on the India-US Economic and Financial Partnership, both countries said they are working to draw more private sector capital to boost the Asian nation’s infrastructure.
Sentiment was also supported by increasing optimism over a US-China trade deal, which drove broader Asian peers to more than 14-week highs, with Asia-Pacific shares outside Japan rising 1%.
Shares of Vedanta Ltd were among the top two gainers on the local indexes, climbing as much as 4.15% in its sharpest intraday gain in more than five weeks. This pushed the Nifty Metals index nearly 3% up to its highest in over three months.
The Nifty PSU Bank index, which tracks the country’s state-run lenders, rose as much as 1.32%, on track for its seventh straight session of gains, with shares of Central Bank of India rising over 4%.
The Nifty IT index inched higher, with shares of software services firm Tata Consultancy Services Ltd adding 1.29%.
Shares of telecom operator Vodafone Idea Ltd rose as much as 10.47%. Shares of Housing Development Finance Corporation rose as much as 0.82%, while Bharat Electronics rose as much as 0.7%. Both companies are due to post quarterly results later in the day.
Meanwhile, private lender Yes Bank climbed 3% after reversing early losses of up to 15%.. The lender posted a bigger-than-expected quarterly loss on Friday, as asset quality worsened and provisions swelled.—Reuters
