Markets

Indian shares extends record rally; Vodafone Idea surges

  • The blue-chip NSE Nifty 50 index ended 0.6% higher at 17,629.5, having cleared a record level of 17,644.6 earlier
Published September 16, 2021

BENGALURU: Indian shares extended their record runs on Thursday, as a surge in bank stocks boosted the broader index, while debt-laden Vodafone Idea soared after the federal government announced a support package for telecom companies.

The blue-chip NSE Nifty 50 index ended 0.6% higher at 17,629.5, having cleared a record level of 17,644.6 earlier, while the benchmark S&P BSE Sensex ended 0.7% higher at 59,141.16 after hitting an all-time peak of 59,204.29.

The subindex for public sector banks surged over 5% to its highest in over two months, while the broader sector for banking stocks advanced over 2% to a record high.

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

Meanwhile, the country's finance minister, due to address media at 5 p.m. local time (1130 GMT) on Thursday, is likely to give details on the creation of a government-funded 'bad bank', a source told Reuters.

Vodafone Idea notched its best day in over a year, jumping as much as 28.5% a day after the government approved a relief package for the telecom sector.

Banks with exposure to the cash-strapped firm also jumped. IDFC First Bank, Yes Bank and IndusInd Bank , which, as per Nomura, have exposure to Vodafone Idea at 3%, 2.4% and 1.7% of their loan books, respectively, climbed between 12.6% and 18.5%.

The subindex for consumer goods stocks jumped as much as 2.2% to a record high, with ITC Ltd gaining as much as 8.2% to lead gains in the sector.

ITC "seems to have caught the eye of investors", said Likhita Chepa, a senior research analyst at CapitalVia Global Research, adding that the company was standing out against its "over-bought peers" in the sector.

Gains were also made across sectors, with the Nifty mid-cap and small-cap indexes rising about 0.4% and 0.2%, respectively.

Auto stocks ended 0.5% higher, with auto parts maker Bosch Ltd rising 4.8% a day after the government announced an incentive scheme for the automobile sector.

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