Indian shares end higher as financials, IT stocks gain

BENGALURU: Indian shares closed higher on Thursday, helped by gains in financials and information technology stocks, while a steady decline in daily COVID-19 cases also helped investor sentiment.

The blue-chip NSE Nifty 50 index was up 0.24% at 15,337.85, while the benchmark S&P BSE Sensex was 0.19% higher at 51,115.22.

India's central bank said the economy had not moderated as much as it did during the first wave of the coronavirus, but uncertainties might act as a short-term deterrent and private demand would be key to revival.

Economic growth prospects now essentially depend on how fast India can arrest its second wave of infections, the Reserve Bank of India said in its annual report.

Investor sentiment has improved in recent days due to the steady decline in daily COVID-19 cases. Earlier this week, the country reported its lowest daily rise of cases in more than a month.

India reported 211,298 new coronavirus cases over the past 24 hours, with the number remaining well below the 300,000-mark for the eleventh day, while deaths rose by 3,847.

Global equities have received a boost after US Federal Reserve officials earlier this week reaffirmed a dovish monetary policy stance, reassuring investors worried about the prospect of rising inflation.

In Mumbai trading, Kotak Mahindra Bank Ltd, State Bank of India and Axis Bank Ltd were the top three boosts to the Nifty 50, gaining between 2.1% and 2.8%.

Nifty components Eicher Motors Ltd and Sun Pharmaceutical Industries Ltd ended 1.12% and 0.61% lower respectively, ahead of their March-quarter earnings.

The Nifty Bank Index rose 1.18% and the Nifty PSU Bank Index, which tracks state-run banks, gained 2.85%. The Nifty IT Index ended 1.14% higher.

Globally, stocks were pinned down as investors awaited US data expected to offer clues on inflation, with further pressures widely seen as sparking a scaling back of central banks' giant stimulus packages.