BUSINESS

Indian shares hit record, bank stocks surge

Reuters

REUTERS: Indian shares hit all-time highs on Thursday (July 26) with the benchmark BSE index breaching 37,000 for the first time, led by banks, ahead of derivatives expiry later in the day.

The broader NSE index was up 0.32% at 11,168 as of 0708 GMT, while the BSE index was 0.37% higher at 36,995.31, after hitting life-highs for the third straight session. The index took only 13 sessions to jump from 36,000 to 37,000.

“We expect markets (NSE) to remain above 11,100 post F&O expiry today, the overall sentiment is positive” – Saurabh Jain, AVP, Research at SMC Global Securities

“Another comforting factor is that crude price have slid from highs in the beginning of the month, easing concerns of inflation.”

Domestic shares also tracked their Asian peers after U.S. President Donald Trump said he and European Commission President Jean-Claude Juncker had agreed to work to lower industrial tariffs on both sides.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent.

Bank shares were boosted by more state-run lenders lining up to enrol for a scheme for faster bad-loan resolution. By Monday (July 23), more than 20 banks had signed up.

A government panel had suggested creating an asset management company (AMC) to resolve bad loans above 5 billion rupees ($73 million), among steps to clean up the banking sector.

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