Indian shares hover near peaks on vaccination, earnings hopes

India Pesticides

05/07/2021 07:23

By Shivani Singh
    BENGALURU, July 5 (Reuters) - Indian shares neared record
highs on Monday, as availability of more COVID-19 vaccines
raised expectations of a sustained economic recovery, with
investors hoping for a strong corporate earnings season that
gets underway later this week.
    By 0510 GMT, the blue-chip NSE Nifty 50 index  .NSEI  was up
0.64% at 15,822.50 and the benchmark S&P BSE Sensex  .BSESN 
rose 0.66% to 52,832.21. The Nifty 50 was less than 100 points
away from its all-time high this morning.
    A steady dip in COVID-19 cases, relaxation of pandemic-led
curbs and a rise in daily vaccinations has boosted sentiment so
far. First-quarter corporate earnings — set to start when tech
giant Tata Consultancy Services  TCS.NS  reports on July 8 — is
on investors' radar to gauge the pick-up in business activity.
    "IT results are expected to be positive and good June auto
sales numbers can provide sufficient positive triggers", said
Narendra Solanki, head of equity research at Anand Rathi
Investment Services in Mumbai.
    The Nifty Auto index jumped 1.11% as Royal Enfield-maker
Eicher Motors  EICH.NS , Bajaj Auto  BAJA.NS  and Jaguar Land
Rover-parent Tata Motors  TAMO.NS  rose between 1.4% and 1.8%
after June sales data.
    Meanwhile, India's June services activity contracted sharply
at its fastest rate in 11 months. But, markets had priced in the
effects of the lockdown in the PMI data, Solanki said.
    The Nifty Bank index  .NSEBANK  gained 0.77%, boosted by
HDFC Bank. The top lender's shares were up 1.3% after it
reported strong growth in loans and deposits.  urn:newsml:reuters.com:*:nL3N2OH14T
    Shares of Panacea Biotec  PNCA.NS  soared 9% after the
biotechnology firm got the Indian drug regulator's nod to
manufacture the Russian Sputnik V vaccine.  urn:newsml:reuters.com:*:nL3N2OH122
    The Economic Times reported Moderna's COVID-19 vaccine was
likely to be available in few major government hospitals by July
15.  urn:newsml:reuters.com:*:nFWN2OF0EJ
    Agrochemical firm India Pesticides  IDIP.NS  jumped 18.2% in
its market debut.

 (Reporting by Shivani Singh in Bengaluru; editing by
Uttaresh.V)
 ((ShivaniSingh1@thomsonreuters.com; +91 89 6969 2349))