BENGALURU: Indian shares advanced for the third consecutive session on Wednesday, aided by a rise in metal stocks on expectations of demand revival in top consumer China, while gains were capped ahead of a rate decision by the U.S. Federal Reserve.
The blue-chip Nifty 50 index closed 0.21% higher at 18,755.90, while the benchmark S&P BSE Sensex rose 0.14% to 63,228.51.
With the benchmarks nearing all-time highs, analysts expect technical resistance near 18,700 levels for the Nifty 50 and consolidation in the next few sessions.
“If the Nifty 50 holds on to 18,700 levels, there is scope for further surge, or else the recent upmove would fizzle out,” said Ajit Mishra, senior vice-president for technical research at Religare Broking.
The broader indices almost mirrored their larger peers, with smallcaps and midcaps rising 0.12% and 0.21%, respectively.
Indian shares rise as easing inflation boosts gains
Seven of the 13 major sectoral indexes advanced, with metals rising 1.42% after China lowered its lending rate to aid economic recovery. China is the world’s largest producer and consumer of metals.
The fast moving consumer goods (FMCG) index gained 0.59% and supported the rise in markets for the second session in a row after domestic retail inflation cooled to a two-year low in May, Data showed. The index has gained nearly 2% in the last two sessions.
Among individual stocks, Tata Consumer Products Ltd rose over 5%, hitting a nine-month high after analysts saw scope to gain market share from the unorganised market.
India’s annual wholesale price index (WPI) eased for the second consecutive month in May to 3.48%, data showed on Wednesday.
In the U.S., too, the slide in annual retail inflation in May to a two-year low raised the probability of a Fed rate pause.
The Fed’s policy decision is due at 11:30 p.m. IST
Comments
Comments are closed for this article.