Wednesday , August 12 2020

India stocks climb on stimulus plan


Indian stocks rose as investors anticipated more government steps to revive consumer sentiment ahead of the festival season that accounts for a bulk of the nation’s sales.
The S&P BSE Sensex gained 0.3 percent to 37,270.82 at the close in Mumbai, advancing for a third consecutive session. The NSE Nifty 50 Index also climbed 0.3 percent.
The nation’s financial markets were closed for a holiday.
Waning consumption has deepened a slowdown in Asia’s third-largest economy, udging the government to supplement the efforts of the Reserve Bank of India, which has cut policy rates four times this year in the region’s most aggressive monetary easing.
The government’s “full focus” now is to see how growth can rise in the next quarter, Finance Minister Nirmala Sitharaman said. The administration is also identifying infrastructure projects it can invest in, she added.
“If the government announces some more stimulus measures, it will help lift sentiment and clear the path for recovery,” said Sanjay Sinha, founder of Citrus Advisors.
“There has been a lot more decline in prices than warranted as the weak sentiment is overpowering.”
Fourteen of 19 sector sub-indexes compiled by BSE Ltd gained, led by a gauge of real estate companies.
Reliance Industries contributed the most to the index advance, increasing 1 percent.
Yes Bank posted the largest gain, rising 14 percent on reports of a stake-sale discussion with Paytm.
Tata Motors Ltd climbed 10 percent as the carmaker’s Chinese retail sales jumped in August.

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