Indian shares hit new peaks as telcos, auto stocks jump on govt support package

BENGALURU: Broad-based gains propelled Indian shares to record highs on Wednesday, with auto stocks and cash-strapped telecom firms among the best performers after the government approved support packages for the sectors.

The blue-chip NSE Nifty 50 index closed 0.8% higher at 17,519.45 and the benchmark S&P BSE Sensex ended up 0.82% at 58,723.20, both settling at record peaks.

Indian equities have outperformed their Asian peers this year on the back of continued monetary policy support and the opening up of the economy from pandemic-induced restrictions.

The market is not likely to see a major correction in the near term and will focus on global events for cues, said Siddharth Purohit, a research analyst at SMC Global Securities.

Indian shares end higher on auto, banking gains; Zee soars

Investor sentiment on Wednesday got a boost from the federal cabinet's decision to approve a production-linked incentive scheme for the automobile sector and a much-expected relief package for the embattled telecoms industry.

The S&P BSE Telecom index settled up 3.45% to rise for a fourth session. Debt-laden Vodafone Idea jumped as much as 7% and larger rival Bharti Airtel ended 4.4% higher.

The sub-index for Indian auto stocks gained 0.8%, with Tata Motors rising 1.9%.

Public sector banks jumped as much as 3% in their best session in nearly two months.

Tech stocks advanced 1.8%, with HCL Technologies scaling a record peak after signing a deal to expand its partnership with fintech company Finastra.

Energy stocks hit an all-time high, with electricity generator NTPC Ltd surging nearly 7% to the top of the Nifty index.