June 10, 2020 / 5:30 AM / a month ago

Indian shares rise as investors bet on swift economic revival

BENGALURU, June 10 (Reuters) - Indian shares edged higher on Wednesday, led by financials as hopes of economic reopening and a generally improved global risk sentiment outweighed concerns over the surge in domestic COVID-19 infections.

The NSE Nifty 50 index rose 0.78% to 10,126 by 0504 GMT, while the benchmark S&P BSE Sensex was up 0.85% at 34,243.92.

“Liquidity and global markets still doing well have been driving (Indian) markets. Otherwise, domestically things are not that great,” said Neeraj Dewan, director at Quantum Securities in New Delhi.

“The scare factor will remain until the (infection) numbers improve. For the economy to pick up, the scare factor has to reduce, otherwise markets will not be able to sustain these heights.”

India reopened shopping malls and restaurants this week, but the number of cases continues to rise - jumping to 276,500 as of Wednesday morning, including 7,745 deaths.

The number of infections in the national capital of Delhi will climb to more than half a million by the end of July but it does not have the hospital capacity to handle such an outbreak, the city-state’s deputy chief minister said on Tuesday.

Gains in financial stocks led the Nifty 50 index higher.

The Nifty banking index and the financial index advanced 0.75% and 0.5%, respectively.

Hero Motocorp Ltd fell 1.5% after the world’s largest two-wheeler maker reported a lower March-quarter profit.

Bombay Dyeing and Mfg Co Ltd dived 5.6% after the company reported a slump in March quarter profit on Tuesday.

Asian stock markets eked out a 10th consecutive session of gains on Wednesday, but momentum ebbed as doubts about the global recovery from the pandemic returned ahead of the U.S. Federal Reserve meeting. (Reporting by Nallur Sethuraman in Bengaluru, Editing by Sherry Jacob-Phillips)

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