Indian shares hit record highs on vaccine cheer

  • Reuters
  • Stock Market News
Indian shares hit record highs on vaccine cheer

By Derek Francis

BENGALURU, Nov 10 (Reuters) - India's main stock indexes hit record highs on Tuesday as progress in the development of a coronavirus vaccine raised hopes of a global economic recovery and helped airline and hotels stocks that have been hammered by the pandemic.

The NSE Nifty 50 index .NSEI rose 0.7% to 12,553.7 by 0512 GMT and the S&P BSE Sensex .BSESN gained 0.85% to 42,60.09, led by banking and financial stocks.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was 0.12% higher on news that Pfizer Inc (NYSE: PFE )'s PFE.N experimental COVID-19 vaccine showed over 90% effectiveness based on initial trial results. MKTS/GLOB

The U.S. drugmaker's Indian arm Pfizer Ltd PFIZ.NS gained as much as 19.8% during the session.

"The vaccine news is a big relief for markets and investors are hoping that the economic recovery will take place sooner," said Samrat Dasgupta, chief executive officer at Esquire Capital Investment Advisors.

"However, the next six months will be crucial as we see more developments on the vaccine."

Stocks of IndiGo owner InterGlobe Aviation INGL.NS rose 5.3%, while hotel operators EIH Ltd EIHO.NS and Lemon Tree LEMO.NS jumped more than 5% each.

Investors hoped that the vaccine would help the travel and hospitality sectors return to normalcy after facing restrictions because of the coronavirus lockdowns, Esquire Capital's Dasgupta said.

Among other sectors, the Nifty Bank index .NSEBANK and the financials index .NIFTYFIN climbed 2.4% each, rising for a seventh consecutive session.

Bajaj Finance BJFN.NS gained 4.5% to top the gainers among the Nifty. Lenders ICICI Bank ICBK.NS and IndusInd Bank INBK.NS added 3.8% and 4.6%, respectively.

Natural gas explorer GAIL (India) GAIL.NS was up 2.3% ahead of its earnings scheduled for later in the day.

The Nifty IT index .NIFTYIT was the top drag among sectors and fell 2.8%. Tech Mahindra TEML.NS slid about 4%, while Infosys INFY.NS and HCL Technologies HCLT.NS slipped around 3% each.

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