Indian stocks log best day since 2009 on $2 trillion US stimulus package

Indian stocks log best day since 2009 on $2 trillion US stimulus package

Indian shares surged to their best single-day percentage gain in over a decade on Wednesday, as a huge stimulus within the us lifted investor sentiment worldwide and eased some concerns as India entered into a national lockdown to see the spread of coronavirus.

The Nifty closed 6.62% higher at 8,317.85 and therefore the benchmark Sensex ended 6.98% higher at 28,525.06. Both the Nifty and Sensex saw their best session since May 2009.

Asian and European shares gained after the us approved a $2 trillion fiscal stimulus package, which is predicted to incorporate $500 billion in direct payments to people and $500 billion in liquidity assistance.

The dramatic recovery in Indian stocks came each day after the country was anesthetize a lockdown to curb the spread of the coronavirus and therefore the government promised to announce stimulus measures to assist the economy.

There is an anticipation from investors that the Indian government would also provide some stimulus for the economy in line with what’s being done elsewhere, said Anita Gandhi, director at Arihant Capital Markets in Mumbai.

Oil-to-telecom conglomerate Reliance Industries Ltd provided the most important boost, closing nearly 15% higher seeing its best day since mid 2009.

Financial stocks accounted for quite half the gains on the Nifty index. Lender HDFC Bank Ltd jumped over 12%, while public sector peer depository financial institution of India rose 4%.