Indian stocks gained on Tuesday after a spike in bank shares, following which India’s apex court dismissed the petition for complete waiver of interest on the loan under the moratorium.
In addition, Adani Ports and Special Economic Zone shares of the company rose 4%, with the company stating that it would buy a 58.1% stake in Gangavaram Port for 36.04 billion rupees ($ 497.82 million).
The blue-chip NSE Nifty 50 index rose 0.5% at 14,805 and the benchmark S&P BSE Sensex rose 0.7% to 50,140 as of 0543 GMT.
The Nifty Bank Index gained 1.4% and the Public Sector Bank Index rose 2.6% on Tuesday by the Supreme Court of India, dismissing the pleas of banks to extend the loan-to-business moratorium period as a major relief.
The Nifty Bank index had fallen by over 5% in the last six sessions.
“Most of the banks are already complying with the provisions related to COVID-19. Arihant Capital Markets Director Anita Gandhi said that even though the Supreme Court’s decision will not come much, it will bring clarity in the banking sector.
The Reserve Bank of India on Monday canceled the bond auction scheduled for the week amid volatility in global bond yields.
Gandhi said developments such as the Supreme Court’s decision and the cancellation of bond auctions are providing some comfort for the banking sector.
The US 10-year Treasury yield slipped following a four-month high of 1.754% the previous week.
The car maker said on Monday that Maruti Suzuki India increased 1.5%, adding that it would raise prices for various models in April due to an increase in various input costs.