Indian shares hit record high on Reliance, HDFC boost

Indian shares hit record high on Reliance, HDFC Bank boost

Elsewhere in Asia, bourses in Mainland China, Japan, South Korea, Hong Kong and other key markets were trading on positive note on Monday

Credit: PTI

Indian shares hit a record high on Monday, led by gains in Reliance Industries Ltd and HDFC Bank, while US President Donald Trump's approval of a pandemic relief package aided risk sentiment globally.

The NSE Nifty 50 index was up 0.68 per cent at 13,842.45 by 10.17 am, while the S&P BSE Sensex was 0.61 per cent higher at 47,261.09. Both indexes hit record highs.

The Nifty and Sensex have each gained about 7 per cent so far in December, with the former hitting record intraday highs 11 times this month.

Meanwhile, broader Asian shares rose at the start of the final trading week of 2020 as Trump signed into law a pandemic aid and spending package, averting a partial federal government shutdown in the United States.

"Absence of negative trigger is more relevant now, there is no sign of reversal of liquidity or interest rate trajectory and as long as those signs are not there, markets will continue to chug along," said Deepak Jasani, head of research, HDFC Securities.

Global stock markets have been awash with large amounts of liquidity, thanks to measures taken by various central banks to help cope with the fallout from the ongoing pandemic. Analysts, however, have warned that stocks remain overvalued and are due for a correction.

Shares in India's most valuable firm Reliance Industries rose 1.2 per cent to their highest since December 21, while HDFC Bank advanced 1.35 per cent, gaining for a fourth straight session.

Reliance said it would buy out IMG Worldwide LLC from its sports management joint venture for about $7 million on Thursday.

The Nifty banking, PSU Bank, and financial indexes rose between 1.33 per cent and 1.06 per cent.

Shares of carmaker Tata Motors Ltd climbed 4.29 per cent, boosting the Nifty Auto Index more than 1 per cent.