Indian shares jump as metals gain
BENGALURU: Indian shares advanced on Thursday following a decline in the previous session as precious metals and stocks gained as investors hope for an improved economy in 2021.
The NSE Nity 50 index ended 1 per cent higher at 12,987.00, rebounding from losses earlier in the session, and a more than 1.5 per cent drop on Wednesday. The S&P BSE Sensex closed 0.98 per cent higher at 44,259.74.
Some financial institutions including HDFC Bank and Kotak Mahindra Bank were among the top boosters to the Nity 50. JSW Steel and Tata Steel also gained 6.1 per cent and 5.0 per cent.
With investors focusing on economic recovery, metals and real estate have jumped as they are most likely to benefit from money pumped into Indian equities by foreign investors.
India has recorded $7billion In November from foreign investors. Five financial companies including HDFC Bank and Kotak Mahindra Bank were the top boosts to the Nity 50, followed by JSW Steel and Tata Steel, which rose 6.1 per cent and 5.0 per cent, respectively.
Sectors, including metals and real estate, have gained sharply this month as investors continue to favour companies seen as likely to benefit from an economic recovery and as foreign money managers pump billions of dollars into
Indian equities. Inflows from foreign institutional investors have reached a record of more than $7 billion this month.
India’s economy is expected to recover early next year from recession, but at a modest pace, according to a majority of economists in a Reuters poll.
World markets were trading higher on optimism around vaccines and the incoming Biden administration in the United States.
Reimposition of certain travel restrictions in few states along with investors’ disappointment over the ambiguity surrounding the Covid-19 vaccine’s availability in the domestic market dragged key the Indian equity markets lower on Wednesday.