(Bloomberg) -- India's NSE Nifty 50 Index rose to an all-time high as lenders rallied on optimism that new government rules would help resolve the world's worst stressed-asset ratios. The Sensex closed near a record.
Nifty rose 0.5 percent to 9,359.90 at the close in Mumbai, while the Sensex added 0.8 percent to end the session within 8 points of its peak reached last week. India's cabinet approved plans to give more powers to the country's banking regulator to govern lenders, an official with knowledge of the matter said. ICICI Bank Ltd. jumped 9.2 percent, the most since September 2013, as analysts forecast a drop in new bad loans this year.
“Government step toward resolution of non-performing assets acted as a trigger for today's moves and it clearly was the day of banking stocks,” said Sushant Kumar, a fund manager at RAAY Global Investments Pvt. in Mumbai.
Summary
- Seven of the 13 sector indexes compiled by BSE Ltd. rallied, led by S&P BSE Bankex. S&P BSE Realty Index paced decline.
- S&P BSE Bankex rallied 2.3% to a record as the cabinet is said to have approved plans to amend the country's banking regulation bill. Axis Bank Ltd. and State Bank of India paced the rally, each rising at least 3.3 percent.
Click here for details on new rules for bad loans
- S&P BSE MidCap Index gained 0.6%, resuming its rally to close at a new record
- Among other moves, Amtek Auto Ltd. gained 2.2%, while units Castex Technologies Ltd. and Metalyst Forgings Ltd. rose more than 5% each on a report by The Economic Times that DA Capital, SSG Capital bid for stakes in Amtek group units
- SH Kelkar & Co. advanced 2.6 percent after saying it will consider a share buyback plan on May 12
To contact the reporter on this story: Ameya Karve in Mumbai at akarve@bloomberg.net.
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Margo Towie, Namitha Jagadeesh
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