BENGALURU: Indian shares rose on Friday morning, recovering from some early losses as sustained foreign inflows, strong corporate earnings and a steady monsoon helped shake off fears of further monetary policy tightening by the US Federal Reserve.
The Nifty 50 index was up 0.09% at 19,514.30, while the S&P BSE Sensex rose 0.12% to 65,866.84, as of 10:05 a.m. IST.
Both the indexes had lost 0.4% at the open, but recovered to hit fresh record highs for the sixth time in seven sessions.
Indian shares close higher, shrugging off weakness in Asia, Europe
The benchmarks have risen over 1.5% each this week so far. Eight of the 13 major sectoral indexes logged gains with auto and realty indexes gaining over 0.5% each.
The resilience in domestic equities contrasted a slide in global peers after data showed a rise in the US private payrolls, stoking fresh fears of a prolonged high interest regime and triggered a spike in bond yields across the world.
Wall Street equities closed lower overnight. Asian markets declined on Friday, with the MSCI Asia ex-Japan index losing nearly 1%.
“Our portfolio remains 45% invested in India, due to the long-term domestic demand story” wrote Christopher Wood, global head of equity strategy at Jefferies.
India has the highest weightage in Jefferies’ Asia ex-Japan long-only thematic portfolio compared to 17% exposure to China.
“Healthy progress in monsoon, strong foreign inflows and decent pre-quarterly updates have added to the strength in domestic markets,” said Siddhartha Khemka, head – retail research at Motilal Oswal Financial Services.
Among individual stocks, Titan Company rose over 3% to hit a record high after the company said it recorded revenue growth of 20% year-on-year in June quarter, in its quarterly update.
Indian Oil Corporation and Praj Industries gained over 2% and 5%, respectively, after the two companies formed a joint venture to build biofuels production capacities in India.
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