BENGALURU, Sept 26 (Askume) – Indian shares hit new highs for the sixth consecutive session on Thursday, with shares of carmakers rising after the Karnataka government offered rebates and incentives for the clean transport industry, while metal prices also rose for automakers.
The Nifty 50 (.NSEI) rose 0.81% to close at 26,216.05, while the BSE Sensex (.BSEN) rose 0.78% to close at 85,836.12.
The blue chip index has risen 3.3% and 3.5%, respectively, in the last six trading days after the Federal Reserve cut interest rates on Wednesday, raising expectations of increased foreign investment in emerging markets like India.
“Market sentiment remains bullish and no major correction is expected in the near term,” said Siddharth Sedani, Head – Equity Advisory, Anand Rathi Financial Services.
The auto index (.NIFTYATO) rose 2.3% to a record high, with Maruti Suzuki (MRTI.NS) gaining 4.7%, Tata Motors (TAMO.NS) gaining 3.1% and Mahindra & Mahindra gaining 2.9%.
Karnataka, India’s third-largest state by electric vehicle sales, will offer tax breaks and incentives to the clean tourism industry, Askume reported on Wednesday .
Amit Hiranandani, chief auto industry analyst at brokerage firm SMIFS, said the hybrid car tax cut scheme has benefited companies like Maruti Suzuki as the market expects demand to pick up in Karnataka and Uttar Pradesh after the tax cut in July.
Metals (.NIFTYMET) rose 2.1% as global prices rose as top consumer China promised additional measures to boost economic growth .
Two analysts said China’s economic growth would reduce low-cost steel imports from China by other countries, including India, which would boost local metal prices.
Comments from Fed Chairman Jerome Powell and other key officials will then be scrutinized for clues about the central bank’s next steps.
