BENGALURU: Indian shares opened higher on Wednesday, in line with Asian peers, as traders reassessed fears of a US recession, and domestic realty stocks jumped after the government relaxed its new property tax rules.
The NSE Nifty 50 index rose 0.96% at 24,225.85, as of 9:50 a.m IST, and the S&P BSE Sensex added 0.82% at 79,247.64.
“The market is showing signs of recovery after three sessions of losses,” said Prashanth Tapse, senior vice president of research at Mehta Equities.
“The key question is whether this rebound will gain momentum or fizzle out as a dead cat bounce (temporary recovery),” Tapse said.
Both benchmark indexes opened about 1% higher in the previous session too, before reversing gains as traders continued to lock in profits.
All the 13 major sectors logged gains on the day.
The realty index jumped 1.5% after the Indian government offered taxpayers the option of using the new tax rate or the previous 20% rate with the inflation adjustment, according to a government document seen by Reuters.
The revised rules had been criticised as they could add to the financial burden of the middle class. Among individual stocks, drug maker Lupin surged 4% after posting higher-than-expected net profit in the June quarter.
Indian shares rise tracking rebound in Asian markets
Oil and Natural Gas Corporation jumped 6.2% after multiple brokerages termed sustained earnings momentum and attractive valuations as key positive triggers for the company.
ONGC reported a quarterly profit beat earlier in the week.
Gland Pharma lost 3% after posting a surprise profit fall, hurt by high employee costs and lower prices for its products in the US Asian markets opened higher, with the MSCI Asia ex-Japan index rising 1.8%.
Japan’s Nikkei 225 added 2.3%.
Wall Street equities advanced overnight, rebounding from the sharp sell-off on Monday, as comments from key Federal Reserve officials eased US recession worries.
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