Indian shares track broader Asia higher on U.S. stimulus hopes; auto, IT stocks gain

Credit: REUTERS/FRANCIS MASCARENHAS

Indian shares climbed on Tuesday, led by auto and IT stocks, as stock markets across Asia gained on hopes that another flood of U.S. stimulus would cushion the global impact of renewed coronavirus outbreaks.

By Derek Francis

BENGALURU, July 28 (Reuters) - Indian shares climbed on Tuesday, led by auto and IT stocks, as stock markets across Asia gained on hopes that another flood of U.S. stimulus would cushion the global impact of renewed coronavirus outbreaks.

The NSE Nifty 50 index .NSEI gained 0.56% to 11,194.1 by 0349 GMT and the S&P BSE Sensex rose 0.52% to 38,131.78.

Asian shares shook off coronavirus concerns and Sino-U.S. tensions to make early gains as investors wagered the U.S. Federal Reserve would reaffirm its super-easy policy outlook this week, and a tolerance for higher inflation. MKTS/GLOB

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 1.2% on the prospect of more fiscal spending and endless cheap liquidity, with Fed Chair Jerome Powell expected to sound reassuringly accommodative after a policy meeting on Wednesday.

U.S. Senate Republicans on Monday proposed a $1 trillion coronavirus aid package as the virus pandemic has killed nearly 150,000 people in the United States.

"Expectations of a U.S. stimulus has contributed to positivity across many other global markets," said Ajit Mishra, vice president research at Religare Broking in New Delhi.

"Any positive signs from the U.S. market will have an impact on domestic sentiment."

In Mumbai, the Nifty auto index .NIFTYAUTO rose nearly 2%. Automakers Mahindra and Mahindra MAHM.NS and Tata Motors TAMO.NS gained over 2.5% each.

Investors are hoping for improved monthly auto sales numbers when they are announced in a week's time, Mishra said.

IT services firm Tech Mahindra TEML.NS rose as much as 5.75% to the top of Nifty gainers' list, pushing up the Nifty IT index .NIFTYIT nearly 1.5%, after it reported higher quarterly profit.

Bharti Infratel BHRI.NS was the top laggard, shedding 2.4%, after it reported downbeat quarterly results and announced the resignation of its chief executive officer.

India's coronavirus cases touched 1.48 million by Tuesday morning, government data showed.

(Reporting by Derek Francis in Bengaluru; Editing by Rashmi Aich)

((derek.francis@thomsonreuters.com; +91-9986311363 and @derekfrancis089 on Twitter;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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