BENGALURU, Aug 17 (Reuters) - Indian shares eked out gains
on Monday as Prime Minister Narendra Modi's assurance on mass
production of COVID-19 vaccines and more infrastructure spending
by the government boosted sentiment.
The NSE Nifty 50 index was up 0.33% at 11,214.50 by
0450 GMT, while the S&P BSE Sensex was up 0.23% at
37,963.60. Both indexes rose as much as 0.63% in early trade.
"Along with mass production, the roadmap for distribution of
vaccine to every single Indian in the least possible time is
also ready," Modi said in his Independence Day speech on
He reiterated plans to improve the country's infrastructure
by spending more than 110 trillion rupees ($1.47 trillion) on
around 7,000 projects.
"Modi's points are helping some stocks but markets are still
undecided and we could see a repeat of Friday's profit-taking,"
said Neeraj Dewan, director at Quantum Securities in New Delhi.
Indian equities saw a steep fall late on Friday and analysts
say stocks are likely to so see further correction as they
In Mumbai trading, IT and Metal stocks rose with the Nifty
IT index and the Nifty Metal index rising
over 1% each.
The Nifty Infrastructure Index was a tick
higher after advancing 0.57% in early trade. Conglomerate Larsen
& Toubro Ltd rose 2.46% and electric power generator
NTPC Ltd added 3.51%
Banking stocks lost ground with the Nifty PSU Bank index
and the Nifty private banking index
slipping 1.26% and 0.8%, respectively.
Private sector lender Axis Bank Ltd fell 2.41% to
a near 2-week low and was the top loser on the Nifty 50 index.
Shares of oil-to-telecoms conglomerate Reliance Industries
Ltd slipped 1.5% and was among the top three drags on
Meanwhile, India's COVID-19 death toll crossed 50,000 and
total coronavirus stood nearly at 2.65 million as of Monday.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Arun