Indian benchmarks at two-month highs, led by autos

MUMBAI: Indian shares rose on Tuesday, led by gains in auto stocks on signs of demand recovery and buoyed by optimism over progress in trade negotiations with the US ahead of the Federal Reserve’s rate decision.

The Nifty 50 added 0.68 percent to 25,239.1, the highest close since July 10, and the BSE Sensex rose 0.73 percent to 82,380.69, the highest close since July 23.

The auto index gained 1.4 percent, led by Mahindra & Mahindra’s 2.2 percent rise. The sub-index snapped a five-session losing streak.

Nomura analysts flagged early signs of demand recovery in the sector following cuts to the Goods and Services Tax (GST), naming Mahindra & Mahindra, Hyundai Motor India , TVS Motors, and Ashok Leyland as their top picks.