Indian shares rose for a second consecutive session on Tuesday, as banking shares such as HDFC Bank gained ahead of results later in the day, while sentiment got a boost on optimism ahead of the annual budget to be unveiled next week. The Supreme Court on Monday rejected a petition to delay the annual federal budget, which Finance Minister Arun Jaitley is scheduled to deliver on February 1, dismissing concerns about potential give-aways ahead of critical state polls.
Analysts are hoping for a budget that delivers some incentives to support an economy that has been hit by India's shock move to ban higher-value banknotes. "Financials have underperformed for sometime because of concerns on growth and outlook after demonetisation," said Neeraj Dewan, director at Quantum Securities. "There can be also be some pre-budget buying happening in the market," Dewan added.
The broader NSE index was up 0.47 percent at 8,430.65 by 0608 GMT, with only six stocks trading in the red. The benchmark BSE index was 0.41 percent higher at 27,227.39. Banks were among the gainers, with HDFC Bank up nearly 1 percent and Kotak Mahindra Bank, which reports earnings on Wednesday, rising 0.80 percent. IT stocks however fell, with Infosys Ltd and HCL Technologies Ltd down more than 1 percent each amid worries US President Donald Trump's protectionist stance would adversely impact global exporters.
Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal on Monday, distancing America from its Asian allies, as China's influence in the region rises. Moil Ltd fell as much as 3.9 pct to its lowest since January 3 after the manganese ore miner said the government would sell 10 percent stake in the company.
Comments
Comments are closed.