March 3, 2020 / 4:43 AM / a month ago

Indian shares rebound on stimulus hopes as coronavirus spreads

* Nifty 50 up 1.6%, Sensex rises 1.5%

* Heavyweight financials, energy stocks advance

By Chris Thomas

March 3 (Reuters) - Indian shares rose on Tuesday after seven straight sessions of losses, lifted by expectations that major central banks would take measures to mitigate the economic impact of the coronavirus outbreak.

The NSE Nifty 50 index rose 1.55% to 11,305 by 0355 GMT, while the benchmark S&P BSE Sensex gained 1.46% at 38,701.08.

“Even though the number of cases outside China are increasing and creating ripples in global markets, markets are assuming a huge possibility that coordinated central bank action and infusion of liquidity can help tackle the economic fallout of the virus,” said Mayuresh Joshi, head of equity research at William O’Neil & Co in India.

Indian equities on Monday gave up early gains and settled lower after the country reported new cases of the virus.

Overnight, the Dow Jones Industrial Average surged over 5%, while the S&P 500 and the Nasdaq each jumped more than 4%, with the European Central Bank joining the U.S. Federal Reserve and Bank of Japan in signalling readiness to deal with the growing threats from the outbreak.

Tuesday’s gains in Indian equities were driven by heavyweight financials and energy stocks.

Conglomerate Reliance Industries Ltd rose as much as 2.5% and was the top boost. Private-sector lender ICICI Bank Ltd climbed 2.7%, while Housing Development Finance Corp Ltd advanced 2.2%.

Miner Vedanta Ltd jumped 5.1%, marking its sharpest intraday gain since early November. The Nifty Metal Index was up 3%.

Automaker Bajaj Auto Ltd was among the two losers on the blue-chip Nifty index, falling as much as 3.7% in its eighth straight session of declines. The company reported a 10% drop in February sales on Monday. (Reporting by Chris Thomas in Bengaluru; Editing by Sriraj Kalluvila)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below