BENGALURU: Indian shares rose on Tuesday, following a relief rally in broader Asian markets as U.S. central bank officials soothed investor nerves after a brutal selloff in the previous session.
The NSE Nifty 50 index rose 1.14% at 24,328.45, as of 9:50 a.m IST, and the S&P BSE Sensex added 1.13% at 79,651.57.
The Nifty Sensex had logged their worst session in two months on Monday amid a global sell-off on fears of a U.S. recession.
Strong U.S. service sector data on Monday eased some of those fears, while key Federal Reserve officials said Friday’s weak labour market data did not signal a recession, boosting investor sentiment.
Asian markets recovered in morning trading, with the MSCI Asia ex-Japan index rising 1.8% and the Nikkei soaring more than 8%.
Domestically, all the 13 major sectors logged gains. The broader, more domestically focussed small- and mid-caps rose about 1.6% each.
Indian shares log worst day in two months on US recession fears
Among individual stocks, state-run oil producer ONGC rose 2% and telecom services provider Bharti Airtel jumped 1.5% after they beat first-quarter profit estimates.
V-mart Retail climbed 11% after posting a profit in June quarter compared to a loss in the year-ago quarter.
Schneider Electric surged 7.5% on reporting rise in June quarter profit.
Realty index jumped about 3% after media reports said the government may address concerns over the budget proposal to revise the taxation of long-term capital gains from real estate transactions.
“Among emerging markets, Indian equities are the most resilient to global market rout,” said analysts led by Mahesh Nandurkar of Jefferies, adding that large-caps could outperform the small- and mid-caps, where valuations are well above the long-term averages.
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