Indian stocks rebounded to finish at yet another high on Thursday amid bullish sentiments. Traders bet on a recovery following news that the Indian Railways (IR) moved a record amount of freight in August.
The National Stock Exchange’s Nifty 50 index closed 0.92% higher at 17,234.15 points. The Sensex ended 0.90% higher at 57,852.54 points.
Two sectoral indices led the pack, each rising 1.67%. They were the Nifty IT index, a basket of 10 technology stocks including Mindtree (up 3.85%), and the Nifty Consumer Durables index, a basket of 15 stocks including components-maker Amber Enterprises India (up 5.71%).
Domestic markets will take in their stride the impact of the administration’s fundraising plan that will be seen draining money from the financial system in the coming years.
The so-called National Monetisation Pipeline, which aims to raise nearly INR6trn ($82bn) by leasing out public-sector assets to private businesses, is unlikely to unsettle India’s financial markets because the programme will be spread out over four years, analysts told Capital.com.
Public share sale
Qualcomm Ventures-backed C.E. Info Systems, the firm operating the MapmyIndia and Mappls brands, has filed early papers with the markets regulator for an initial public offering (IPO) of its shares.
The company intends to raise about INR1.2bn through the IPO, according to a report by YourStory.com
Gainers and losers
The Indian rupee was trading 0.065% lower to the US dollar, to INR73.03 at 16:43 Indian Standard Time (IST – UTC+5:30).
On the Nifty, shares of Shree Cement, the HDFC Life Insurance Company and drug-maker Cipla were the top gainers, adding 5.98%, 5.77% and 3.48%, respectively.
Meanwhile, automobile-maker Mahindra & Mahindra (M&M), the Oil & Natural Gas Corporation (ONGC) and two-wheeler major Bajaj Auto were the top losers, shedding 1.94%, 0.92% and 0.86%, respectively.
On the Sensex, shares in software giant Tata Consultancy Services (TCS), consumer goods-maker Hindustan Unilever and Aditya Birla Group firm Ultratech Cement were the biggest gainers, adding 3.34%, 2.50% and 2.45%, respectively.
M&M, Bajaj Auto and insurance provider Bajaj Finserv were the biggest losers, shedding 2.29%, 0.79% and 0.41%, respectively.
State-owned Indian Railways moved a record amount of cargo in August 2021 with the volume of freight increasing by 16.8% year on year, the railways ministry said in a 1 September media statement.
The operator of Asia's largest rail network loaded 110.55 million tonnes of freight in August. The ministry also said the national transporter earned INR108.7bn from the transport of goods last month, which is 20.16 % higher than what it garnered in August 2020.