Bengaluru:
Domestic stock markets rose for a fifth straight session on Thursday, ahead of the expiry of derivative contracts for August, with financials leading the gains and real estate stocks jumping after a state in the country reduced a tax on property. Benchmark indices S&P BSE Sensex and NSE Nifty 50 have rallied 4.7 per cent so far this month on optimism around coronavirus vaccines and upbeat commentary from corporate managements signalling a pick up in business activity.
The NSE Nifty 50 index was up 0.38 per cent at 11,594.45 by 10:30 am, while the S&P BSE Sensex was 0.46 per cent higher at 39,254.73. Mortgage lender HDFC and ICICI Bank were the top two boosts to the Nifty 50.
Real estate stocks jumped 5.9 per cent and were on course for their best one-day gain since mid-June after Maharashtra reportedly cut a tax on property to support the ailing sector.
The real estate index has risen 15 per cent this month alone, although it is still down 23 per cent since the start of the year.
Stocks indirectly tied to the real estate sector, such as mortgage lenders and paints makers, were also benefiting from the tax cut, said Nagendra Solanki, head of fundamental research at Anand Rathi Shares and Stock Brokers in Mumbai.
“In a way, we’re seeing sectors that were not participating in the rally now starting to participate,” he said.
Meanwhile, other Asian markets took a breather amid renewed US-China tensions and as investors looked ahead to Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium.
