Stocks settle at fresh record high in India’s Diwali session

Bloomberg

Indian shares rallied to a record in the ceremonial evening session to mark Diwali, the Hindu festival of lights, as earnings of some of the country’s biggest companies bolstered optimism for a faster economic recovery.
The S&P BSE Sensex and NSE Nifty 50 gauges ended higher in the one-hour session, paced by oil and gas companies. Tata Steel Ltd rose 1.1% while Oil & Natural Gas Corp Ltd advanced 0.7% after both companies reported results for the September quarter overnight, bringing an end to the earnings season.
The centuries-old tradition of seeking the blessings of Lakshmi, the Hindu Goddess of Wealth, has taken on an added purpose this year as investors pray for a lifting of the pall of the coronavirus pandemic to help the economy emerge from a record contraction.
“With recent news on progress of an effective vaccine against Covid-19, we appear closer to the end of a difficult period for society at large,” said S Hariharan, head of sales trading at Emkay Global Financial Services Ltd.
India’s key equity indexes have risen about 10% since last Diwali even as consumption was quashed by the world’s biggest lockdown, aimed at quelling the virus.
Analysts remain optimistic that a steady flow of dollars, low interest rates and a pick-up
in demand seen in the last
few months will help businesses recover.