BENGALURU: Indian shares advanced on Monday, led by a rebound in beaten-down financials and tracking gains in Asian markets.
The blue-chip NSE Nifty 50 index rose 1% to 21,567.15 points and the S&P BSE Sensex was up 0.97% at 71,395.13, as of 9:59 a.m. IST.
Asian markets rose, led by China after the country’s markets regulator said it will fully suspend the lending of restricted shares, in an attempt to stabilise the country’s stock markets.
Meanwhile, the Federal Reserve’s favoured inflation reading showed moderating prices in December, bolstering hopes of early rate cuts.
Domestically, 12 of the 13 sectors logged gains. Financial services, which has the highest weightage, added 1.3%.
Financials had lost 6.28% in the last seven sessions since top private lender HDFC Bank’s reported disappointing quarterly results. The benchmark Nifty had shed about 3% over the same period.
Indian shares log worst week since late Oct as financials extend losses
HDFC Bank, which itself had lost 14.6% in those seven sessions, rose 1.3% on the day.
“We think that the bulk of the selling pressure is over and the benchmark Nifty could consolidate near the current levels in the next few sessions ahead of the Fed’s rate decision and (India’s) union budget due later in the week,” said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.
“While the Fed could spill more details on the potential timeline for rate cuts, India’s interim budget could bring sectors like infrastructure to the fore due to likely higher allocations.”
The Federal Reserve rate decision is on Wednesday and India’s budget will be presented on Thursday.
Among individual stocks, Oil and Natural Gas Corporation jumped 4% and was the top Nifty 50 gainer, helped by Brent crude futures hitting an eight-week high.
Shares of SBI Cards and Payment Services lost 6% after the company reported a smaller-than-expected third-quarter profit, weighed by higher finance costs.
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