Sensex, Nifty gain 1%; multiplexes rise as government allows reopening

FILE PHOTO: People walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, March 9, 2020. REUTERS/Francis Mascarenhas/File photo

BENGALURU (Reuters) – Indian shares rose on Thursday, led by media stocks, after the federal government allowed states to gradually open movie theatres, while the government of India’s richest state, home to the financial capital Mumbai, said it would reopen bars and restaurants.

By 0349 GMT, the broader NSE Nifty 50 index rose 1.1% to 11,367.70 and the S&P BSE Sensex was up 1.1% at 38,503.15. On Wednesday, both the indexes recorded their first monthly drop in four months, falling more than 1% in September.

India’s federal government on Wednesday allowed states to reopen movie theatres at 50% capacity, and said schools and educational institutions could restart in a phased manner.

Shares in India’s top cinema chains PVR Ltd and INOX Leisure 13% and 14%, respectively, pushing the Nifty media index up 4.3%.

Auto companies will announce their September sales data later in the day. Bajaj Auto’s shares rose 3% after it reported a 10% surge in September sales.

Meanwhile, data showed India’s infrastructure output contracted 8.5% in August from a year earlier and the country was staring at a ballooning fiscal deficit in the current financial year.

Reporting by Nallur Sethuraman in Bengaluru; editing by Uttaresh.V

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