Indian market jumps over 2{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} as Reliance soars on Facebook deal

Indian shares ended sharply higher on Wednesday, driven by a 10 per cent surge in Reliance Industries Ltd.(RELI.NS) after Facebook (FB.O) invested $5.7 billion in the conglomerate’s digital business.

The NSE Nifty 50 index .NSEI closed 2.29 per cent higher at 9,187.3, while the benchmark S&P BSE Sensex .BSESN was up 2.42 per cent at 31,379.55.

Shares of heavyweight Reliance Industries hit a near eight-week closing high and contributed nearly half the gains on the Nifty 50 after Facebook bought a 10 per cent stake in the company’s digital business, helping billionaire Mukesh Ambani’s company reduce its huge debt pile.

Investor sentiment was also supported by a higher open for Europe’s main stock markets and hints of progress on a programme of government stimulus domestically.

While U.S. and European governments have spent trillions of dollars to offset the economic impact of the crisis, India has so far announced only one round of budget stimulus worth about $23 billion to provide free cooking gas cylinders, grains and some cash to the country’s poor.

Indian media had speculated that the government would announce a package of support for businesses on Wednesday, but Minister Prakash Javadekar said after a cabinet meeting that the package would be announced as and when it is designed.

Kotak Mahindra Bank Ltd (KTKM.NS) rose 2 per cent after the private-sector lender approved a capital raising plan, while cement maker ACC Ltd (ACC.NS) climbed 8.2 per cent after reporting a better-than-expected quarterly profit.

Consumer goods giant Hindustan Unilever Ltd (HLL.NS) was up 3 per cent, paint manufacturer Asian Paints Ltd (ASPN.NS) jumped 5 per cent to a near six-week closing high, and Zee Entertainment Enterprises Ltd (ZEE.NS) surged 17.5 per cent.

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