Sensex closes at 40,469.70 up by 185.51, Nifty ends at 11,940.10

File photo. Photograph:( Reuters )

Reuters New Delhi, India Nov 19, 2019, 04.07 PM (IST)

Indian shares ended higher on Tuesday, led by gains in banking stocks, while shares of telecom companies surged on the back of announcement by the country's two major mobile network service providers that they planned to hike tariffs.

The NSE Nifty 50 index ended 0.47 per cent at 11,940, while the S&P BSE Sensex closed 0.5 per cent higher at 40,469.70.

The Nifty public sector bank index gained 3.9 per cent, while the Nifty energy index rose 1.5 per cent.

"The hope for bank investors is that many cases stuck in the insolvency and bankruptcy code may be sorted out now, taking Essar Steel verdict as precedent," said Amit Kumar Gupta, portfolio manager at Adroit Financial Services Pvt Ltd.

The Supreme Court of India on Friday cleared the path for steelmaker ArcelorMittal SA to take over bankrupt Essar Steel, and the judgment comes as a big reprieve for banks which are struggling with bad loans worth $140 billion.

Shares of Bharti Airtel ended up 7.37 per cent and were one of the top gainers in Nifty 50, with the stock hitting its highest since January 24, 2018. Yes Bank shares fell 2.51 per cent to end as the top loser.

Meanwhile, Vodafone Idea shares rose as much as 43.82 per cent during the session.

On Monday, Airtel and Vodafone Idea said they would increase mobile tariffs from December, after posting record, multi-billion-dollar quarterly losses.

Story highlights

The NSE Nifty 50 index ended 0.47 per cent at 11,940, while the S&P BSE Sensex closed 0.5 per cent higher at 40,469.70.