BENGALURU: Indian shares inched higher in choppy trade on Thursday and were set for their best month since August as oil prices fell, while Axis Bank rose after a deal to acquire Citigroup’s local consumer banking businesses.
The NSE Nifty 50 index rose 0.16% to 17,525.45, as of 0454 GMT, while the S&P BSE Sensex climbed 0.12% to 58,755.85.
Both indexes were near their seven-week highs and set to post monthly gains of more than 4%.
The indexes were set to log gains of about 20% for the financial year ending March 31. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 12% during the same period.
“The odds are pretty high that the next financial year will be a good year for the market given that the economic recovery is proceeding nicely,” said Saurabh Mukherjea, founder of Marcellus Investment Managers.
“Almost always, when you have economic recovery and rising interest rates, you tend to get very healthy stock market performance. I think that’s the sort of 12 months we’re heading for,” Mukherjea said, adding that $100 crude prices were not a macro challenge for India.
Oil prices tumbled on Thursday as the United States weighed a massive reserves release to calm soaring crude prices.
India is the world’s third-largest importer and consumer of oil, and a surge in crude prices tends to push the country’s trade and current account deficit higher while also hurting the rupee and fuelling inflation.
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Shares of Axis Bank rose as much as 1.7% after the lender announced a $1.6 billion acquisition of Citi’s local retail business to bulk up its credit card and retail presence.
IIFL Wealth Management jumped 7.6% to a record after saying investment firm Bain Capital would buy a 24.98% stake in the company. Bajaj Finance rose as much as 2.7% to a 10-week high and was on track for a fourth straight session of gains.
Meanwhile, Hindalco Industries tumbled for a second day, falling as much as 3.6% to a two-week low.
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