(Bloomberg) -- India’s main stock indexes closed at a record as investors bet that Asia’s third-largest economy will keep the stimulus taps flowing to recover from a deadly wave of the coronavirus.
The NSE Nifty50, the country’s most liquid gauge, breached the 16,000-mark for the first time and the benchmark BSE Sensex closed at the highest level in data going back to 1979. The latter is the 12th-highest gainer among almost 100 global indexes tracked by Bloomberg over the past year.
The run-up in stocks comes before the central bank’s monetary policy decision Friday, where interest rates are expected to be left at an all-time low even as inflation accelerates. The upswing factors in expectations of future growth as central banks around the world take steps to protect their economies, Indian Finance Minister Nirmala Sitharaman told parliament on Tuesday.
“We are seeing a lot of indicators of economic recovery,” said Vinay Khattar, head of research at Edelweiss Wealth Management Ltd. “The positive sentiment is also aided by ample liquidity and lower central bank rates. We are advising clients to stay invested in equities and if there is any decline, it should be used as an opportunity to buy.”
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