Indian shares surged on Tuesday, buoyed by the stellar performance of heavyweight companies HDFC Bank and Reliance Industries, as well as the impending demerger of Reliance’s financial services unit. The Nifty 50 index rose by 0.21% to reach 19,753.05, while the S&P BSE Sensex gained 0.24% to hit 66,752.84 as of 10:09 a.m. IST. Both benchmarks achieved a significant milestone, with over 0.5% growth, setting new all-time highs.
Out of the 13 major sectoral indices, nine experienced gains, with the financial sector leading the charge with an impressive 0.8% increase. HDFC Bank emerged as the top gainer in the index, bolstered by positive feedback from analysts regarding its robust June-quarter results. Meanwhile, Reliance Industries witnessed a growth of over 1%, although it later experienced a minor correction. Since setting the record date for the demerger on July 8, the stock has soared by 6.2%, with analysts anticipating further gains leading up to the effective date of July 20.
On the global front, Wall Street equities closed higher in the previous session due to positive earnings outlooks and a slowdown in inflationary pressures. However, Asian markets experienced a dip, largely influenced by weaker-than-expected data from China. The MSCI Asia ex Japan index declined by 0.7%. Noteworthy individual stocks include Sheela Foam, which soared by 15.41% to reach a seven-month high following an all-cash deal worth approximately $262 million to acquire rival company Kurlon. On the other hand, IT firm LTIMindtree experienced a decline of over 3.5% after falling short of profit expectations in the June quarter.
(With agency inputs.)