Sensex, Nifty climb on stimulus hopes, surge in banks and IT firms

Indian shares marked a six-week closing high on Thursday, boosted by gains in heavyweight banking and IT stocks on expectations of a fresh stimulus package from the government to soften the damage from the coronavirus pandemic.

The Nifty closed 1.38% higher at 9,313.90 and the Sensex was up 1.54% at 31,863.08.

Kotak Mahindra Bank Ltd closed up 8.5%, recording its best day since 25 March. The private-sector lender ended higher for a second straight session after it approved a capital-raising plan on Wednesday. Larger rivals HDFC Bank Ltd and ICICI Bank Ltd climbed between 2.8% and 5%.

Information technology giants Tata Consultancy Services Ltd and Infosys Ltd jumped about 6% each.