BENGALURU, Oct 13 (Reuters) – Indian shares hit record highs on Wednesday as Tata Motors soared on plans to boost electric-vehicle investments, with sentiment lifted by easing domestic inflation and an emergency nod for a COVID-19 vaccine for kids.
The NSE Nifty 50 index (.NSEI) was up 0.66% at 18,110.65, while the S&P BSE Sensex (.BSESN) rose 0.53% to 60,600.70 by 0450 GMT. Both indexes were hovering around fresh records scaled earlier in the session.
Tata Motors surged nearly 20% to its highest level since February 2017 and was the top boost to the Nifty. The Jaguar Land Rover parent said on Tuesday it raised funds from private equity firm TPG and that it would invest over $2 billion in its electric vehicle business over the next five years. read more
“Overall, the EV market is very vibrant in India. With Tata’s move, the commercial space could get interesting, and we could see other auto firms following suit,” said Narendra Solanki, head of equity research (fundamental) at Anand Rathi Investment Services.
Nifty’s auto index (.NIFTYAUTO) extended gains to a fifth session, rising 3.6% to its highest level since January 2018.
“The economy seems to be responding well, and news around the vaccine for kids is also supporting momentum,” Solanki said, referring to India’s drug regulator recommending emergency use of Bharat Biotech’s Covaxin for the two to 18 age group. read more
The country’s retail inflation eased to a five-month low in September, data on Tuesday showed, amid rising concerns about soaring global energy prices. read more
Airline stocks also surged, as Interglobe Aviation (INGL.NS) rose 5% and SpiceJet (SPJT.NS) added 6% after India’s civil aviation ministry said domestic flights would fly at full capacity from next week. read more
Investment banking firm Centrum Capital (CENC.NS) jumped nearly 20% after the central bank issued a small finance bank license for its unit.
Reporting by Chandini Monnappa in Bengaluru; Editing by Ramakrishnan M.
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