Indian shares rebounded from an early slide on Thursday after a slower-than-expected rise in inflation calmed nerves caused by weak global markets and bomb blasts in Mumbai. Financials led the gains with leading lenders State Bank of India and ICICI Bank rallying 1.5 and 1.4 percent respectively on hopes the central bank may pause on its tightening cycle in the coming months.
The 30-share BSE index closed up 0.12 percent, or 22.18 points, at 18,618.20, with 18 components advancing. The 50-share NSE index rose 0.3 percent to 5,599.8. The wholesale price index, India's main inflation gauge, rose an annual 9.44 percent in June, faster than the previous month but below expectations of 9.7 percent, driven by higher manufactured goods and fuel prices.
The main stock index, which had slid in early trade in tandem with shaky global markets and unease caused by the co-ordinated bomb blasts in the financial hub, climbed more than 1 percent after the inflation data before paring the rise towards the close. Price pressures are expected keep pressure on the central bank to raise rates this month despite signs of slowing growth. Export-driven software services companies fell, with Tata Consultancy Services shedding 2.2 percent ahead of its quarterly results. Smaller rivals Infosys dropped 1.3 percent and Wipro lost 0.5 percent.