BENGALURU: Indian shares scaled to a one-month high on Friday, as strong corporate earnings reports, including from Axis Bank, helped resist weakness in global markets on fears of the impact of aggressive rate hikes on economic growth and corporate results.
The NSE Nifty 50 index was 0.37% higher at 17,628.30, as of 0456 GMT, while the S&P BSE Sensex climbed 0.4% at 59,439.74, after climbing over 0.5% each.
Both the indexes were set to add to a five-session rally. If the gains hold, the benchmark indexes will likely post their biggest weekly rise since late July.
“There are good domestic cues from strong results specifically from banks, and foreign investors buying shares are adding to this rally.
However, weak sentiment from fears of interest rate hikes and rising bond yields remain,“ said Neeraj Dewan, director at Quantum Securities.
Foreign institutional investors bought a net 18.65 billion Indian rupees ($225.2 million) worth of equities on Thursday, while domestic investors sold net 8.87 billion rupees worth of shares, as per provisional data available with the National Stock Exchange.
Asian shares fell on Friday tracking losses on Wall Street, while Treasury yields surged as investors braced for expected aggressive rate hike from the European Central Bank next week, and the Federal Reserve and the Bank of England early next month.
Indian shares track Asian peers lower on rate hike fears
In Mumbai trading, Nifty’s public sector bank and private sector bank indexes were among the top performers, rising 2.6% and 1.4%, respectively.
Axis Bank surged as much as 6.5% to hit a record high and was the top gainer on the Nifty 50 index.
The private lender reported a better-than-expected 70% jump in second-quarter profit on Thursday.
Oil-to-retail conglomerate Reliance Industries, India’s most valuable company, swayed between positive and negative territory ahead of its quarterly earnings results later in the day.
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