Mumbai: Indian equities gained for the fifth consecutive session on Thursday after finance minister Nirmala Sitharaman said the government was planning more measures to spur economic growth. Investors are awaiting fresh cues on US-China trade deal and the US Federal Reserve meeting next week. Gains also boosted after banking stocks rallied.
At 1.35pm, the Sensex was up 0.84%, or 325.91 points, at 38,912.49, while the Nifty advanced 0.66% to 11,540.15.
The Sensex gained for six out of seven sessions and rose 4% or 1,400 points. The Nifty gained 4%, or 450 points.
Sitharaman said more reforms were on the anvil in the current fiscal year to boost growth as fresh economic data and subdued corporate earnings point to a deeper economic downturn.
The government has already announced a series of measures, including a deep cut in corporate tax, to counter a severe demand slowdown and slump in private investment that have left economic growth stuttering at a six-year low of 5% in the quarter ended June.
"Going forward, various government measures, a sharp recovery in monsoon (10% above normal), and lower interest rates augur well for the revival of the consumption story in India", said Religare Broking in a note to investors.
According to IndiaNivesh, a stable government, aggressive policy reforms of far-reaching consequences, lower interest rate trajectory, good monsoon, a stable rupee and range-bound crude oil prices are seeds for economic revival. "We expect the economy to be back on track from FY21 onwards as benefits of the recent tax reforms will play out in full throttle.
Banking stocks gained. Yes Bank rose 13%, Indusind Bank 4%, State Bank of India 2.4%, Axis Bank 2% and ICICI Bank 1.4%, respectively.
Among laggard, Vedanta Ltd fell 2.5%, followed by Tech Mahindra and ONGC, down 1.2% each.
US equities indices ended the session flat and consolidated ahead of the Federal Reserve meeting on interest rates next week. Asian share indices opened flat with markets awaiting further clarification on the progress of US-China trade talks as a negative rhetoric on Hong Kong could see some more faltering in talks.
Brokerage firm IIFL Securities expects more weekly expiry-related volatility today, but the bias is seen positive as traders may buy at dips.
Bajaj Consumer Care extended gains from Wednesday when it surged 20%. The stock gained 13% at open today to trade at ₹264.55. The company reported to exchanges that its promoter sold 3.22 crore shares, or about 21.9% stake, according to data from stock exchanges. This brings down promoter holding in the company to 38%.