Sensex, Nifty rise on boost from HDFC, financials

BENGALURU (Reuters) – Indian shares were boosted by mortgage lender HDFC and financial stocks on Thursday, extending a new year rally that has been powered by domestic vaccine approvals and a surge in foreign fund inflows.

FILE PHOTO: People walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, February 28, 2020. REUTERS/Hemanshi Kamani/File photo

By 0505 GMT, the blue-chip NSE Nifty 50 index rose 0.25% to 14,181.85 and the benchmark S&P BSE Sensex gained 0.2% to 48,268.16.

Both indexes had hit record highs in the first four trading sessions of 2021, after adding about 15% last year in their fifth annual gain. Foreign investors pumped more than $20 billion into Indian equities last year, according to Refinitiv Eikon data.

“Enormous liquidity is creating a huge support for the markets,” said Mayuresh Joshi, head of equity research at William O’Neil & Co in Mumbai.

“The incessant buying that you are seeing from foreign institutional investors is just continuing.”

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8%, as investors looked past violence in Washington and bet on a large U.S. fiscal stimulus package after Democrat victories in Senate runoffs in Georgia.

In Mumbai trading, HDFC Ltd gained 2.2% and was the top boost to the Nifty 50.

The Nifty Bank Index added 0.5%. Lenders such as Yes Bank, HDFC Bank and Bandhan Bank this week reported higher loans and advances as of Dec. 31, 2020.

In other stocks, poultry companies Venky’s (India) and Simran Farms fell 2.9% and 5%, respectively, in the wake of bird flu outbreaks in multiple states, according to a government report.

Sobha Ltd rose 4.5% after the real estate company said its third-quarter total sales value jumped 22.3% to 8.88 billion rupees.

The Nifty IT index fell 0.81%, with Tata Consultancy Services shedding 1.4% ahead of its third-quarter earnings report scheduled on Friday.

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