Indian shares rose on Tuesday as a slowdown in daily coronavirus cases raised hopes that the government will further ease restrictions, with HDFC Bank supporting the gains after an upbeat forecast from a ratings agency.
The NSE Nifty 50 index .NSEI rose 0.25% to 1,903.30 by 0501 GMT, while the S&P BSE Sensex .BSESN was up 0.3% at 40,561.38.
COVID-19 cases in India are decreasing after a peak in mid-September, with the world’s second-worst affected country reporting a near three-month low of 46,790 new infections in the last 24 hours.
“Declines in daily COVID-19 cases and deaths has given some comfort that there could be further relaxations to the economy,” said Siddharth Purohit, an analyst at SMC Instituional Equities.
Shares of HDFC Bank HDBK.NS rose as much as 1.4% after ratings agency S&P said the lender’s asset quality over the next two years would remain superior to the industry despite likely deterioration from the pandemic.
The Nifty IT index .NIFTYIT was up 1.7%, as heavyweights Wipro WIPR.NS, Infosys INFY.NS, and Tata Consultancy Services TCS.NS gained between 1.1% to 1.3%.
The Nifty Bank index .NSEBANK was on track to snap two straight sessions of gains, dipping 0.4% on losses in Bank of Baroda BOB.NS and Bandhan Bank BANH.NS.
Shares of Britannia Industries BRIT.NS slipped as much as 5.2% to their lowest in almost a month after it reported quarterly revenue that missed estimates.
Meanwhile, Asian stocks dipped as investors adjusted their risk exposure ahead of the Tuesday stimulus bill deadline set by U.S. House Speaker Nancy Pelosi.
Global events will play a bigger role going ahead and poses a risk to domestic markets, Purohit said.