Indian stocks rose yesterday, extending their gains for the week, as Reliance Industries Ltd lifted the benchmark index after updating the market on its debt position and border tensions with China eased.
Reliance Industries, the nation’s most valuable company, became net-debt free after completing a slew of deals starting with Facebook Inc, and including the likes of KKR & Co.
All in all, it has raised more than $23bn from stake sales and a rights issue.
The S&P BSE Sensex added 1.5% to 34,731.73 in Mumbai after swinging between gains and losses at least five times. The measure completed a weekly advance of 2.8%. The NSE Nifty 50 Index rose by a similar magnitude yesterday.
After deadly border clashes with China this week, India said the two nations will join in a summit with Russia next week.
The government is also proceeding with an auction of coal blocks for mining that it said would boost state revenue and create jobs.
“Things are looking a little more favourable than before, which shows government measures are working and some sectors, like auto, have started talking positively,” said Deven Choksey, a strategist at KRChoksey Investment Managers Pvt in Mumbai.
The yield on the most-traded 6.45% 2029 bond was little changed at 5.98%, while the rupee weakened 0.1% to 76.2112 per US dollar. Seventeen of 19 industry sub-indexes compiled by BSE Ltd advanced, led by a gauge of realty companies.
Bajaj Finance Ltd was the top gainer on the Sensex, rising 6.7%, while Infosys Ltd. was the biggest drag, declining 1.2%. Reliance Industries rose 6.2%.
Meanwhile the rupee settled 6 paise lower at 76.20 (provisional) against the US dollar yesterday as strengthening of the US currency and rising Covid-19 cases weighed on investor sentiment.
Forex traders said factors like strengthening US dollar, rising coronavirus cases and border tension between India and China dragged down the local unit, while positive domestic equities and fresh foreign fund inflows supported the rupee and restricted the decline to some extent.
The rupee opened at 76.28 against the US dollar, regained some lost ground and finally settled for the day at 76.20 against the US dollar, down 6 paise over its previous close.
During the four-hour trading session, the domestic unit witnessed an intra-day high of 76.17 and a low of 76.29 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03 per cent to 97.44.
Foreign institutional investors were net buyers in the capital market as they bought shares worth Rs366.57 crore on Thursday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 2.51% to $42.55 per barrel.
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