Indian shares closed higher on Thursday, snapping a six-session losing streak, as lenders recovered while Asian peers found relief on hopes that US plan to introduce protectionist tariffs could exclude certain key partner countries. The broader NSE index ended 0.87 percent higher at 10,242.65, while the benchmark BSE index closed 0.96 percent up at 33,351.57.
Financial stocks accounted for over half of the gains on the indexes, with ICICI Bank Ltd closing up 3.9 percent and State Bank of India ending 4.1 percent higher. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.89 percent. "Markets are relieved that Trump is going to take a far more thoughtful approach towards any sanctions that he puts through," said Sunil Sharma, chief investment officer at Sanctum Wealth Management.
Financial shares were among the biggest gainers, with ICICI Bank Ltd rising 1.4 percent, while Housing Development Finance Corp Ltd rose 1.5 percent. Private lenders and non-banking financial companies (NBFCs)are gaining as public sector lenders have turned inwards as there is no credit extension at the PSU banks, Sharma said.
Information and technology stocks also advanced, with the NSE IT index rising 0.6 percent. Infosys Ltd was 1 percent higher. Telecom stocks such as Bharti Airtel Ltd and Idea Cellular Ltd rose on the Indian government's move to raise the cap on airwaves that a mobile operator can hold to 35 percent from 25 percent earlier. Bharti Airtel was 1.6 percent higher, while Idea Cellular edged up 0.06 percent.
The NSE Metal index slipped 1.1 percent after rising as much as 1.6 percent in early trade. Hindalco Industries Ltd dropped 1.9 percent. Broader Asian shares rose, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.9 percent.
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