BENGALURU: India’s blue-chip stock indexes rose for a sixth straight session on Tuesday, boosted by consumer goods and metal stocks, while hopes of faster easing of COVID-19 curbs in China underpinned investor sentiment.
The NSE Nifty 50 index rose 0.3% to settle at 18,618.05, and the S&P BSE Sensex climbed 0.28% to 62,681.84, both logging in record closing highs for fourth consecutive day.
“Strong retail inflows and expected moderation in inflationary pressure on back of easing crude oil prices could help sustain benchmark indices at higher levels,” said Gaurav Dua, head of capital market strategy at Sharekhan.
FMCG giant Hindustan Unilever was the top boost to the Nifty, surging 4.3% on its best day since late April.
The Nifty FMCG index was the best performer among sub-indexes, adding 1.9%, with analysts saying softening commodity prices, a revival in rural demand and expectations for better margins in the third quarter boded well for the stocks.
Meanwhile, sentiment in Asian markets improved on speculations that the recent public unrest in China may prompt an earlier loosening in COVID-19 restrictions, easing fears of supply-chain snags in the world’s second biggest economy.
That helped prop up prices of metals, and in turn lifted stocks of domestic steelmaking giants such as JSW Steel and Tata Steel.
Gland Pharma Ltd rose nearly 8% after a report said that its Chinese parent was considering selling shares. The Indian drugmaker said it was not aware of any information related to the sale.
Paytm jumped nearly 5% after CLSA analysts upgraded the stock to “buy” from “sell,” and said its cash burn would end in another 4-6 quarters.
Drugmaker Laurus Labs tumbled over 9% after Kotak Institutional Equities downgraded the stock to “sell” and cut its fair value on margin risks.