Indian shares rise as oil, Fed fears ease; financials gain on Q2 updates
- Nifty 50 rose 0.60% to 22,555.75, while the Sensex gained 0.66% to 72,382.47
Indian shares advanced on Monday after their longest weekly losing streak in 25 years, supported by a pullback in oil prices and easing concerns over aggressive US monetary tightening.
The Nifty 50 rose 0.60% to 22,555.75, while the Sensex gained 0.66% to 72,382.47. India’s blue-chips have fallen for eight straight weeks through Friday, pressured by record foreign selling, elevated oil prices and a sharp rise in global bond yields.
On Monday, market sentiment improved after softer-than-expected US jobs data reduced expectations of a Federal Reserve rate hike later this month, offering relief to emerging-market assets, while a drop in crude prices also helped.
“Indian markets stand at a crossroads, with domestic liquidity competing with a challenging global macro backdrop,” said Kruti Shah, quant analyst at Equirus Securities.
Mean reversion is already underway across large- and mid-caps, with crude prices, global yields and liquidity remaining key variables for the market, Shah said.
Thirteen of the 16 major sectors rose while the broader small-caps and mid-caps added about 0.5% and 0.7%, respectively.
Financials led the rise after positive quarterly business updates. Banks and financials gained 0.5% and 0.4%, while state-owned lenders added 1%.
Bajaj Finance rose 2.3% after posting an 11% year-on-year growth in new loans in the September quarter.
Punjab National Bank gained 2.5% after the state-run lender posted global advances growth of 14.8% in the September quarter.
Bank of Baroda rose 0.9% after reporting 18% growth in quarterly advances.
Mahindra & Mahindra Finance added 2% after the non-bank lender said that overall disbursement jumped 22% in the September quarter, in its business update.
ITC gained 5.1%, leading the fast-moving consumer goods index 1.8% higher, after Citi double-upgraded to “buy” from “sell”.
Nykaa-parent FSN E-Commerce rose 4.5% after projecting strong revenue growth in the September quarter, citing strength in fashion and beauty verticals.