Indian shares jump on economic growth data, widening immunisation drive

BENGALURU: Indian shares jumped on Monday after the country kicked-off an expansion of its COVID-19 immunisation campaign and data showed that the economy returned to growth in the December quarter.

The NSE Nifty 50 index rose 1.71% to 14,781.20 by 0458 GMT and the S&P BSE Sensex firmed 1.81% to 49,990.38.

Both the indexes slumped nearly 4% on Friday as rising bond yields sparked a massive sell-off in global equities.

But with bond yields easing from last week's peaks and the US House passing a $1.9 trillion coronavirus relief package, MSCI's broadest index of Asia-Pacific shares outside Japan gained nearly 1% on Monday.

Aiding sentiment at home was news that Prime Minister Narendra Modi was inoculated with the first dose of a home-grown coronavirus vaccine, beginning an expansion of the country's immunisation campaign.

Meanwhile, data on Friday showed that the country's gross domestic product grew 0.4% in October to December, compared with a revised contraction of 7.3% in July to September.

"The GDP data was positive and this is building expectations that post-COVID recovery would be fast, the expansion of immunisation drive is also helping alleviate any concerns," said KK Mittal, an investment adviser at Venus India.

Private sector lenders and IT stocks were the top boosts to the Nifty. The Nifty private bank index which slumped 4.7% in Friday's rout, advanced 1.6% on Monday.

The Nifty IT index added 1.7%, while the Nifty Auto index climbed 2.2% ahead of monthly sales data from automakers due later in the day.

Bucking the trend, shares of telecom firms Bharti Airtel and Vodafone Idea fell 2.5% and 1.7%, respectively.

On Friday, rival Reliance Jio said it would offer mobile phones and unlimited services for two years at 1,999 rupees ($27.16).