Sensex hits 2-month highs, tracking Asian peers

Investors were growing hopeful that India's annual budget to be unveiled on Feb. 1 would contain incentives for companies.

Published: 11th January 2017 10:18 AM  |   Last Updated: 11th January 2017 12:41 PM   |  A+A-

(File Photo | PTI)

By Reuters

MUMBAI: Indian shares rose for a second straight session on Wednesday to a two-month high, tracking Asia peers ahead of U.S. President-elect Donald Trump's news conference later in the day that will give an initial insight into his policies.

Asian shares pulled ahead to two-month highs on Wednesday, while the Nasdaq ended at another record high on Tuesday.

Trump's plan for tax cuts and infrastructure spending has boosted U.S. shares but his protectionist statements during the election campaign have kept many investors guessing.

Investors were also growing hopeful that India's annual budget to be unveiled on Feb. 1 would contain incentives for companies to help prop up an economy being hit by a ban on higher-value cash notes.

"Global markets are moving into multi-year highs and Indian markets have underperformed in comparison," said an analyst with broking firm Sushil Finance.

"Also, there is a possibility that budget expectations are getting built in."

The broader NSE Nifty was up 0.57 percent at 8,336 as of 0554 GMT, after climbing as much as 0.69 percent to its highest since Nov. 11, 2016 earlier in the session.

The benchmark BSE Sensex was 0.5 percent higher at 27,033.60 after rising as much as 0.67 percent to a two-month high.

Among the top gainers were financial stocks which accounted for more than 50 percent of the gains, with the Nifty Bank index rising as much as 1.58 percent to its highest since Dec. 9, 2016.

Shares of IndusInd Bank Ltd climbed as much as 4.64 percent to its highest in two months after the company on Tuesday reported a 29 percent jump in December-quarter net profit to 7.5 billion rupees ($110.09 million).

Shares of Shiva Cement Ltd hit nearly a nine-year high after the company approved a potential sale of certain shares held by promoters to JSW Cement.

IT stocks were among the top losers with Tata Consultancy Services Ltd shedding the most, down 1.14 percent, followed by Infosys Ltd, which was 0.44 percent lower.

Both companies will report their quarterly results later this week.


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