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Bloomberg
India stocks rose as investors anticipate more fiscal stimulus after the government decided to increase its borrowing target by over 50% this fiscal year.
The S&P BSE Sensex climbed 1.8% to 32,225.79 as of 9:46 am in Mumbai, while the NSE Nifty 50 Index rose by the same magnitude. The regional MSCI Asia Pacific Index increased by 1.3% as a number of countries reported the fewest coronavirus deaths since March.
India’s revised borrowing program signals greater fiscal expenditure to support Asia’s third-largest economy through the pandemic. That may also help boost appetite for equities after concerns about a lack of stimulus sent stocks to their worst week in five last Friday.
“Equity investors will be encouraged by the government’s substantially higher borrowing plan, which is indicative of more fiscal stimulus on the way,†said Anita Gandhi, an investment adviser at Mumbai-based Arihant Capital Markets Ltd.
Prime Minister Narendra Modi is due to meet with chief ministers of Indian states via video conference today. While the agenda hasn’t been announced, they may discuss the further easing of the nationwide lockdown that’s due to run until next Monday.
Reliance Industries Ltd. rose 2.3%, on course for a fifth straight day of advances, as investors anticipate it could see more investments from foreign backers. The company has already completed a slew of deals starting with Facebook Inc. and including the likes of Silver Lake Partners LP.