BENGALURU: Indian shares closed higher on Monday after six consecutive sessions of losses, driven by gains in Eicher Motors, and some cement stocks after Adani Group announced a $10.5 billion deal that will make it the second-biggest cement producer in the country.
The NSE Nifty 50 index gained 0.38% to 15,842.30 at close, and the S&P BSE Sensex advanced 0.34% to 52,973.84. The indexes rose over 1% each in the session earlier.
“In a bear phase, there will be relief rallies, but such rallies are unlikely to sustain, given the relentless selling by foreign institutional investors (FIIs),” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
Foreign investors sold $1.81 billion worth of Indian equities last week, Refinitiv data showed.
“It’s important to appreciate the fact that FIIs are selling not because they are bearish on India but because US bond yields are attractive and the dollar is strengthening,” Vijayakumar said.
Royal Enfield owner Eicher Motors settled 7.6% higher and was the top gainer on the Nifty 50. It reported consolidated net profit of 6.10 billion rupees ($78.53 million) for the March quarter, up nearly 16% from a year earlier.
Ambuja Cements and ACC closed 2.5% and 3.9% higher, respectively, after Adani Group said it would buy Swiss company Holcim AG’s controlling stake in the cement businesses.
Rivals UltraTech Cement and Shree Cement settled 2.9% and 2.6% lower, respectively, and were the top losers on the Nifty 50 index.
Asian and European shares fell after weak economic data from China added to fears of a slowdown in growth. China’s April retail sales plunged 11.1% on the year, almost twice the fall forecast.
India’s state-owned insurance behemoth Life Insurance Corp is expected to list on the stock exchanges on Tuesday.