Indian shares rose in line with Asian peers on Thursday as investors clung on to hopes of a vaccine for COVID-19, while the central bank’s move to improve liquidity at shadow lenders boosted financial stocks.
The Nifty rose 0.73% to 10,506.7 by 0348 GMT, while the Sensex was up 0.71% at 35,666.57.
MSCI’s broadest index of Asia Pacific shares outside of Japan rose 0.9%, following a strong close on Wall Street after a COVID-19 vaccine from Pfizer and Germany’s BioNTech was found to be well tolerated in early-stage human trials.
On Wednesday, the Reserve Bank of India announced a government-backed fund to buy debt from shadow banks, in a move seen easing a liquidity crunch in the sector.
Bajaj Finance Ltd rose as much as 2.1% and was the top gainer on the Nifty 50. The Nifty Bank Index, which has lost more than 30% so far this year, gained 1.3%.