BENGALURU: Indian shares advanced on Monday, aided by a rise in high-weightage financial and information technology stocks after strong economic data from the United States and investment in the Adani group of companies boosted risk appetite.
The Nifty 50 index rose 1.08% to 17,783.80, while the S&P BSE Sensex gained 1.07% to 60,448.50 as of 10:39 a.m. IST.
All 13 major sectoral indexes rose, with financials and information technology adding over 1% and 1.5%, respectively. All the Adani group stocks advanced as well, extending gains after US boutique investment firm GQG Partners’ $1.87 billion investment in the conglomerate on Thursday.
The investment spurred a broad-based rally on Friday with both the Nifty 50 and Sensex posting their best day in nearly four months.
“When you have a credible long-term investor putting in a significant chunk of money into Adani group stocks, it’s a confidence booster,” said Atul Suri, CEO of Marathon Trends - PMS.
Analysts added that Adani group stocks have a “collateral” effect on markets. “Banks have risen after the news.
The weightage of financials on the index is so large that the sector can lift the index and the entire market sentiment,“ Suri added.
Indian shares log weekly gains after Adani investment boost
Financial services stocks had a 37.40% weightage on the Nifty 50 as of Feb. 28.
The rise in domestic equities is also aided by an uptick in global equities after data showed the US services sector grew at a steady clip in February, indicating expansion of the economy in the first quarter of 2023.
Among individual stocks, Mahanagar Gas jumped nearly 7% after the company acquired Unison Enviro for 5.31 billion Indian rupees ($64.93 million), while Bajaj Electricals surged 5% after winning contracts worth $69 million.
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