By Bharath Rajeswaran
(Reuters) -India’s equity benchmarks rose for a fifth straight session on Wednesday as tech stocks rallied ahead of the Federal Reserve’s Jackson Hole symposium and as consumer shares gained on hopes of a demand boost from the proposed tax reforms.
The Nifty 50 added 0.28% to 25,050.55, while the BSE Sensex rose 0.26% to 81,857.84.
Both benchmarks have added about 2.3% and 2%, respectively, in five sessions.
Optimism over the proposed goods and services tax (GST) reforms, easing India-China trade concerns, and S&P’s upgrade of India’s sovereign outlook have all buoyed market sentiment, said Gaurav Garg, analyst at Lemonn Markets Desk.
On the day, nine out of 16 major sectors advanced. The broader small-cap and mid-cap indices rose 0.3% and 0.5%, respectively.
IT stocks, which earn a significant share of revenue from the U.S., climbed 2.7% ahead of the Federal Reserve’s Jackson Hole symposium on Aug. 21-23.
Investors widely expect a 25-basis-point Fed rate cut next month, a move that is seen supporting U.S. growth and reviving client spending for Indian technology firms.
“A dovish tone from Fed Chair Jerome Powell could provide a positive trigger for Nifty and offset negative sentiment surrounding tariff developments,” said analysts led by Dharmesh Shah of ICICI Securities.
Consumer shares rose 1.4%, taking their three-session gains to 3.7%, on expectations that lower GST rates will boost demand and earnings.
Financials slipped 0.4%, limiting the benchmarks’ advance.
Gaming-linked firms Nazara Tech and Onmobile Global fell 12.9% and 3.4%, after Reuters reported India planned to ban online money-based games.
Micro-irrigation stocks such as Jain Irrigation and Mahindra EPC climbed 2.4% and 17.8% on hopes of zero GST on farm equipment.
Fertiliser makers Chambal Fertilisers, Rashtriya Chemicals and Paradeep Phosphates extended gains, jumping between 2.3% and 5.4%, on improved supply prospects from talks with China.
Sula Vineyards gained 2.5% after CNBC-TV18 reported the winemaker is looking to enter the premium spirits market.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Janane Venkatraman)
