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Shares open higher on easing global banking concerns, tracking a rebound in global equities

The rise in domestic equities follows a rebound in the US and European markets amid news that a large group of banks was infusing cash into lender First Republic Bank.

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Bengaluru:  Indian shares opened higher on Friday, tracking a rebound in global equities after a slew of measures to support the global banking system eased worries about a crisis in the financial sector.

The Nifty 50 index was up 0.51% at 17,071.85, while the S&P BSE Sensex rose 0.50% to 57,925.12 as of 9:38 a.m. IST.

The rise in domestic equities follows a sharp rebound in the U.S. and European markets on Thursday on news that a large group of banks was infusing cash into U.S. lender First Republic Bank alongside a lifeline from Swiss National Bank to Credit Suisse.

The developments eased concerns of a crisis in the global banking system.

Eleven of the 13 major sectoral indexes advanced with high weightage financials rising 0.8%. Information technology stocks rose over 1% and nine of its 10 constituents logged gains.

India’s largest IT services provider TCS was the exception, losing 0.2% after the resignation of its CEO Rajesh Gopinathan barely a year into his second five-year term. He will be succeeded by TCS veteran K Krithivasan.

Among individual stocks, defence firms like Hindustan Aeronautics, Bharat Forge, Bharat Dynamics gained after the Indian government approved the purchase of equipment worth $8.5 billion from domestic companies.

Glenmark Life jumped over 4% after declaring an interim dividend of 21 rupees per share for fiscal 2023.

($1 = 82.5870 Indian rupees)

 

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann Thoppil and Janane Venkatraman)

Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.

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