BENGALURU, Jan 20 (Reuters) - Indian shares edged higher on
Wednesday, led by gains in information technology stocks and on
positive global cues after U.S. Treasury Secretary nominee Janet
Yellen advocated for a huge fiscal relief package in the United
States.
The blue-chip NSE Nifty 50 index rose 0.4% to 14,574
and the benchmark S&P BSE Sensex was up 0.3% at
49,544.75 by 0450 GMT. The Nifty and Sensex rose 1.7% on
Tuesday.
At her confirmation hearing on Tuesday, Yellen urged U.S.
lawmakers to "act big" on the next coronavirus relief package.
"These are the indicators investors are watching for... This
is a classic bull run, which will continue until the central
bankers take away the accommodative stance, which will not
happen in the near future," said Saurabh Jain, assistant vice
president of research at SMC Global Securities in New Delhi.
U.S. President-elect Joe Biden, who will be sworn into
office on Wednesday, last week laid out a $1.9 trillion stimulus
package proposal to boost the economy.
The Nifty IT index was the top gainer, rising
2.5%. Infosys Ltd and Tata Consultancy Ltd
rose 2.2% and 1.6%, respectively and were the top boosts to the
index.
The index has gained about 55% in 2020 and is so far up 10%.
"The IT companies have given phenomenal numbers and guidance
was good. (Still) there was some profit booking. The underlying
factors of Indian IT companies are pretty much strong. Serious
investors will not unload positions in these stocks," Jain said.
Shares of Nifty 50 components Bajaj Finance were
flat, while Bajaj Finserv rose 0.9% ahead of their
Dec. quarter earnings later in the day.
Asian shares climbed to a record high on Wednesday over
Yellen's backing for more stimulus to help the world's largest
economy ride out a pandemic-driven slump.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by
Shailesh Kuber)