MUMBAI (Reuters) – The BSE Sensex and Nifty rose over 1 percent on Tuesday on value buying in blue-chips such as ICICI Bank (ICBK.NS) after a seven-day losing streak, as investors shrugged off worries that an anti-corruption party may win the Delhi state elections.
Traders chose to focus on reforms in the upcoming budget on Feb. 28 when Finance Minister Arun Jaitley is widely expected to boost capital spending and offer tax breaks to an under-performing manufacturing sector.
The ruling Bharatiya Janata Party was heading for election defeat in New Delhi at the hands of the Aam Admi, or Common Man Party, a TV projection showed on Tuesday, in the first blow for Prime Minister Narendra Modi since he swept to power last year.
“AAP’s win will not thwart the reform process. Market has started to discount the budget,” said Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance.
The Nifty fell 4.8 percent over the last seven sessions, matching its losing streak in November 2013.
The Sensex was up 1.12 percent on Tuesday, while the broader Nifty rose 1.14 percent.
Blue-chips favoured by foreign investors led the gains, with ICICI Bank rising 4 percent and HDFC Bank (HDBK.NS) up 1.9 percent.
Tata Motors (TAMO.NS) was up 3.4 percent, while mortgage lender Housing Development Finance Corp (HDFC.NS) added 0.9 percent.
(Reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)
- Politics & Government
- ICICI Bank
- BSE Sensex
- Bharatiya Janata Party