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BENGALURU, Oct 5 (Reuters) - Indian shares jumped on Monday, as banking stocks rose after the government said it would waive certain interest levies on some loans under a moratorium, while IT stocks gained after Tata Consultancy Services said it would consider buying back shares.
The NSE Nifty 50 index rose 1.13% to 11,545.25 and the S&P BSE Sensex gained 1.19% to 39,154.23 by 0515 GMT.
The Indian government has told the country’s top court it would waive the compounding interest component on loans up to 20 million rupees, a legal filing showed.
The top court is set to hear petitions on waiving compound interest on loans under a moratorium later in the day.
The government’s clarification on the moratorium case has offered some reprieve to banking stocks, according to Rusmik Oza, head of fundamental research at Kotak Securities.
“On Friday, there was a bit of negative sentiment towards the U.S. President getting hospitalised and now over the weekend things are a little better,” Oza added.
The Nifty Bank index rose 1.6%, led by IndusInd Bank, up 1.7%.
Shares of India’s largest IT services exporter Tata Consultancy Services rose as much as 5.01% to a record high of 2,650 rupees after saying it would consider buying back shares later this week.
The Nifty IT index rose 2.7%, with Wipro Ltd gaining as much as 5.6% to 330.55 rupees, its highest level in over two decades. TCS, Wipro and Infosys were among the top gainers on the Nifty 50.
Mukesh Ambani-led Reliance Industries rose as much as 1.1% after securing 135.98 billion rupees in investments for its retail unit from sovereign wealth funds GIC, Mubadala and U.S. investment firm TPG Capital over the past few days.
$1 = 73.2930 Indian rupees Reporting by Philip George in Bengaluru; editing by Uttaresh.V
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