Sensex, Nifty track broader Asia higher on US stimulus hopes; auto, IT stocks gain

The NSE Nifty 50 index gained 0.56 per cent to 11,194.1 by 0349 GMT and the S&P BSE Sensex rose 0.52 per cent to 38,131.78. - Reuters
The NSE Nifty 50 index gained 0.56 per cent to 11,194.1 by 0349 GMT and the S&P BSE Sensex rose 0.52 per cent to 38,131.78. - Reuters

Dubai - Nifty50 gain is led by auto sector stocks like Tech Mahindra which is up by 3 per cent.



by

A Staff Reporter

Published: Tue 28 Jul 2020, 10:04 AM

Last updated: Tue 28 Jul 2020, 12:25 PM

Indian shares climbed on Tuesday, led by auto and IT stocks, as stock markets across Asia gained on hopes that another flood of US stimulus would cushion the global impact of renewed coronavirus outbreaks.
The NSE Nifty 50 index gained 0.56 per cent to 11,194.1 by 0349 GMT and the S&P BSE Sensex rose 0.52 per cent to 38,131.78.
In Mumbai, the Nifty auto index rose nearly 2 per cent. Automakers Mahindra and Mahindra and Tata Motors gained over 2.5 per cent each.
Investors are hoping for improved monthly auto sales numbers when they are announced in a week's time, Mishra said.
IT services firm Tech Mahindra rose as much as 5.75 per cent to the top of Nifty gainers' list, pushing up the Nifty IT index nearly 1.5 per cent, after it reported higher quarterly profit. Bharti Infratel was the top laggard, shedding 2.4 per cent, after it reported downbeat quarterly results and announced the resignation of its chief executive officer.
"Following the positive global market cues and the optimism of $1 trillion stimulus package by US, Indian market is trading higher. Nifty50 and BSE Sensex both are up by 0.40 per cent," said Arun Leslie John, Chief Market Analyst, Century Financial.
"In Nifty50 gain is led by auto sector stocks like Tech Mahindra which is up by 3 per cent, Tata Motors is up by 2.65 per cent and M&M is up by 2.50 per cent. Tech Mahindra reported 1.36 per cent Y/Y rise in net profit at 972.30 crore in Q1. Among the sectoral indices auto is up by 1.80 per cent, IT is up by 1.15 per cent and metal is up by 1 per cent. For the day 11083 & 11240 could work as support and resistance for NIfty50."
Meanwhile, Indian rupee erased early losses and was trading higher at 74.76 per US dollar to quote at Dh20.37. It opened marginally lower at 74.86 per dollar versus previous close of 74.83.
"INR trading near flat to 74.8150 after appreciating 0.04 per cent to 75.82 in previous session against US Dollar tracking the positive global cues and weak US Dollar against major currencies amid US stimulus package optimism. For the day 74.45 & 75.05 could work as support and resistance," said John.
The RBI has announced a new 10 year benchmark to be auctioned coming Friday. Abhishek Goenka, Founder and CEO, IFA Global, said: "This is now the 9th security which would be available to FPIs under the Fully Accessible Route (FAR). As the float under the FAR increases, it increases the likelihood of our bonds getting included in a global bond index. In the scenario of partial inclusion we could be looking at inflows of around $30 billion. We may see some some sideways action in currencies until the FOMC tomorrow." 
- With inputs Reuters, sandhya@khaleejtimes.com


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