Indian shares rise on hopes of more stimulus

BENGALURU, Aug 14 (Reuters) – Indian shares rose on Friday, helped by gains in metal and bank stocks, as hopes of more stimulus to shore up an economy reeling from the fallout of the COVID-19 pandemic boosted sentiment.

“With Independence Day approaching, there is some expectations of announcements (from the prime minister), that broadly seems to be the theme today,” said Anand James, chief market strategist at Geojit Financial Services in Kochi.

The NSE Nifty 50 index was up 0.49% at 11,356.35 by 0350 GMT, while the S&P BSE Sensex was up 0.51% at 38,508.83. Both indexes are set to finish the week over 1% higher.

India’s Nifty 50 has been hovering around five-month highs after six days of gains this month, while small-cap shares have risen enough to clock a gain in 2020, a rally that many analysts say does not reflect economic reality.

Banking stocks inched higher, with the Nifty PSU bank index and the Nifty private banking index adding 0.7% each. The Nifty Metal index rose as much as 1.07% in early trade.

Shares of aluminium and copper manufacturer Hindalco Industries Ltd were up nearly 1% ahead of its quarterly results later in the day.

Meanwhile, India continues to see rising number of coronavirus cases, with the tally crossing 2.4 million and deaths at 47,000, as of Thursday.

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