BENGALURU: Indian shares held firm on Monday, while investors awaited directions from key central bank meetings in a data-heavy week, starting with the domestic retail inflation reading later in the day.
The blue-chip Nifty 50 index closed 0.21% higher at 18,601.50, while the benchmark S&P BSE Sensex rose 0.16% to 62,724.71.
Nine of the 13 major sectoral indexes advanced, with information technology (IT) rising 1.51%. The IT index had lost nearly 2% in the past two sessions. Realty stocks also added over 1%.
Broader indices outperformed their larger peers, with midcaps and smallcaps adding 0.55% and 0.87%, respectively. Both have logged gains for 12 weeks in a row. The midcap index hit a record high last week.
All eyes are now on domestic retail inflation data, due at 5:30 p.m. IST.
India’s inflation likely cooled to a 20-month low of 4.42% in May as food price rises slowed further, drawing closer to the Reserve Bank of India’s medium-term target of 4%, a Reuters poll of economists found.
Indian shares set to open higher on hopes of Fed rate pause
“Inflation and industrial output estimates are priced to perfection,” said a market analyst, who requested his firm not be named. “If the numbers miss estimates, it could lead to a near-term slide in markets.”
Analysts also added that the impact of El Nino on monsoon rains will be a key monitorable, and expected the benchmark Nifty to consolidate for the next few weeks.
Global equities advanced on rising odds of a rate pause by the U.S. Federal Reserve.
Among individual stocks, shares of Cochin Shipyard Ltd gained 3.38% after being declared the lowest bidder for an Indian Navy contract to upgrade a ship.
CMS Infosystems rose over 5.5% after funds, including SBI Mutual Fund, IIFL Mutual Fund-IIFL Focused Equity Fund and Abu Dhabi Investment Authority, picked up shares at the promoter’s 13.75% stake sale.
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