BENGALURU: Indian shares ended higher on Monday after two straight weekly losses as IT stocks rebounded and Reliance Industries jumped on a brokerage upgrade, while investors also eyed the federal budget and more blue-chip earnings.
The blue-chip NSE Nifty 50 index climbed 1.39% to 17,339.85, while the S&P BSE Sensex rose 1.42% to 58,014.17. The indexes shed about 3% each last week.
Foreign investors sold off heavily this month in the run-up to the budget due Tuesday, where analysts expect additional fiscal measures to boost investment amid a third wave of COVID-19 infections.
The Nifty finished January slightly lower, while the Sensex shed 0.4%, as losses in the last two weeks outweighed sharp gains at the beginning of the month.
Jefferies said valuations of Indian equities were still not in "the comfort zone" despite the recent correction driven by worries over the US Federal Reserve tightening.
The Nifty IT index climbed 2.9% on Monday, after having fallen in eight of the last nine sessions amid a tech sell-off. But it recorded its worst month since March 2020.
India's most valuable firm Reliance Industries, jumped 2.2% after CLSA upgraded the stock to 'buy' and raised its target price. Last week, the stock logged its worst performance in a year despite strong quarterly results.
Shares of Jaguar Land Rover owner Tata Motors closed around 4% higher. The automaker posted a bigger-than-expected loss after market hours and said it was worried about rising inflation even as it saw semiconductor supply issues easing.
Refiner BPCL jumped around 4%, while Indian Oil added 0.9% ahead of their quarterly earnings reports later on Monday.
AGS Transact Technologies dropped 8% on its first day of trading.
Meanwhile, the government's annual economic survey showed India forecast its economic growth slowing to 8%-8.5% for the fiscal year starting April as it fights rising COVID-19 cases and inflation.