Indian shares rebound 1pc, but fail to prevent worst week in a month

BENGALURU: India’s blue-chips bounced back by 1% on Friday, helped by some healthy corporate results and hopes of easing US inflation, but a six-session losing streak ensured the indexes posted their worst weekly decline in more than a month.

The Nifty 50 index settled 1.01% higher at 19,047.25, while the S&P BSE Sensex rose 1.01% to close at 63,782.80.

However, they lost nearly 2.5% this week, the steepest such drop since the week ended Sept. 22, buffeted by elevated US yields, high oil prices and worries that the Middle East conflict could widen.

On the day, Nifty 50 constituents Cipla, Maruti Suzuki India gained 2.03% and 1.31%, respectively, on beating profit estimates for the September quarter.

Public sector banks gained 4.11%, boosted by post-earnings rallies in Punjab National Bank, Indian Overseas Bank and Canara Bank.

IT stocks, battered in the past two weeks by weak corporate earnings, gained 1.24% after data showed inflation cooled in the United States, a key market for IT companies.

“While the consolidation is likely to continue in Indian markets, a sharp correction in Nifty 50 is unlikely,” said Aishvarya Dadheech, chief investment officer at Fident Asset Management.