India's Nifty 50 hits record high as auto, energy stocks jump

Force Motors

15/09/2021 06:28

BENGALURU, Sept 15 (Reuters) - India's Nifty 50 index hit an
all-time high on Wednesday, boosted by energy stocks, while
automobile and telecom shares climbed on local media reports
that the government was considering incentives and financial
relief for the sectors.
    The blue-chip NSE Nifty 50 index  .NSEI  was up 0.46% at
17,459.05 by 0510 GMT, having hit a record high of 17,641.50
earlier. The benchmark S&P BSE Sensex  .BSESN  rose 0.47% to
58,579.86.
    Energy stocks  .NIFTYENR  added more than 1%, driven by Oil
and Natural Gas Corp's  ONGC.NS  5.5% jump to a near two-year
high. The stock was also the top gainer on the Nifty 50.
    Auto stocks  .NIFTYAUTO  advanced 0.7% after local media
reported https://www.livemint.com/news/india/cabinet-to-take-up-incentives-for-the-auto-industry-on-wednesday-11631595360311.html
 that the government would likely consider production-linked
incentive scheme for specific segments of the sector in a
cabinet meeting on Wednesday.
    The incentive, however, would only provide temporary
respite, said Siddharth Purohit, a research analyst at SMC
Global Securities, as the sector continues to face risks from a
global chip shortage and tepid demand.
    Debt-laden telecom company Vodafone Idea  VODA.NS  rose
about 3% and bigger rival Bharti Airtel  BRTI.NS  gained 1.8% on
reports https://timesofindia.indiatimes.com/business/india-business/cabinet-may-consider-relief-package-for-telecom-sector-on-wednesday/articleshow/86202143.cms
 that the cabinet would likely consider financial relief
measures for the telecom sector in its meeting on Wednesday.
    Telecom companies would benefit from such relief measures in
the long term, Purohit said, adding that expectations of a hike
in tariffs and a reduction in debt in the future would also
help.
    Meanwhile, shares of Zee Entertainment Enterprises  ZEE.NS 
extended their rally to rise as much as 15%. On Tuesday the
stock soared 40% ahead of a shareholders meeting.  urn:newsml:reuters.com:*:nL4N2QG1P8
    In broader Asia, shares fell as weak Chinese economic data
sparked worries of slowing growth globally.

 (Reporting by Soumyajit Saha in Bengaluru; editing by
Uttaresh.V)
 ((Soumyajit.Saha@thomsonreuters.com;))