By Kashish Tandon and Bharath Rajeswaran
(Reuters) -India’s equity benchmarks rose for a sixth straight session on Thursday, boosted by financial shares that jumped on a proposal to exempt insurance from tax.
The Nifty 50 advanced 0.13% to 25,083.75 and the BSE Sensex gained 0.17% to 82,000.71.
Reliance, the third-heaviest stock on the Nifty, climbed 0.8% after J.P.Morgan cited attractive valuations and multiple growth drivers to maintain “overweight” rating.
Shares have been rising on India’s goods and services tax (GST) reform plans and S&P’s sovereign rating upgrade. The Nifty advanced 2.4% and the Sensex added 2.2% in six sessions.
On the day, the broader small-caps closed flat while mid-caps fell 0.4%.
Eight of the 16 major sectors gained.
Financials rose 0.3%, led by ICICI Prudential Life and SBI Life, after a state ministers’ panel proposed GST exemptions on individual health and life insurance premiums to spur demand.
The panel also endorsed a new two-slab GST structure, pending approval from the GST Council.
“Consumption-related stocks are expected to outperform markets in the near term, boosted by the government’s GST reforms, which are expected to revive corporate earnings and drive demand,” said Sunny Agrawal, head of fundamental equity research, SBICAPS Securities.
IT index rose 0.1% as investors watch for U.S. Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole summit on Friday that could give clues on the central bank’s rate path.
Markets are pricing in a 25 basis-point rate cut in September, a move that is seen supporting U.S. growth and reviving client spending for Indian technology firms.
Still, caution around U.S. tariffs on Indian goods effective Aug. 27 and uncertainty over Russia–Ukraine peace talks capped gains.
Among individual stocks, exchange operator BSE and discount broker Angel One dropped 7.6% and 6.7% after markets regulator signaled tighter rules for equity derivatives.
(Reporting by Kashish Tandon and Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala, Rashmi Aich and Harikrishnan Nair)
