BENGALURU, Nov 3 (Reuters) - Indian shares rose on Tuesday, as factory activity data from Asia’s third-largest economy signalled a recovery in demand after coronavirus-led disruptions, with banking and financial stocks supporting gains.
By 0441 GMT, the NSE Nifty 50 index and the S&P BSE Sensex were up 0.92% each at 11,775.75 and 40,121.83, respectively.
India’s factory activity expanded at its fastest pace in over a decade in October, a private survey showed.
The expansion was led by a combination of festive season and pent-up demand, despite fiscal expenditure being rather subdued through the pandemic, analysts at HSBC said in a note from Monday.
“Much of the rise in (factory) output was led by new domestic orders, even as export orders accelerated,” the note said.
The data was in line with strong numbers from other major world economies, boosting Asian markets. MSCI’s broadest index of Asia-Pacific shares outside Japan added 1%.
Asian markets also rose ahead of the U.S. presidential elections as the main candidates, incumbent Donald Trump and his Democratic rival Joe Biden, made a last-ditch push for votes in key states.
“Generally, the incumbent staying on in power has had a positive impact on markets,” said Anand James, general manager at Geojit Financial Services in Kochi. “However, irrespective of who becomes the President, we will see money flowing into the (equity) markets.”
The Nifty banking index rose 2.12%, led by a 3.9% gain in ICICI Bank. The lender’s shares are up for a second session after it reported upbeat earnings on Saturday.
The financials index gained 2.2%, with heavyweight HDFC Ltd leading the gains. The stock jumped 3.5% on strong earnings.
Banks and financial stocks have the biggest weight here on the Nifty among sectors of about 35%.
Meanwhile, fertilizer maker UPL Ltd fell about 2% and was the session’s top laggard. (Reporting by Derek Francis in Bengaluru; editing by Uttaresh.V)
Our Standards: The Thomson Reuters Trust Principles.