Indian shares advanced today, aided by high-weightage information technology (IT) and financials stocks as investors find valuations attractive after a recent correction, ahead of key economic data to gauge the path for future rate hikes.
The rise helped the benchmarks snap a three-month losing streak.
The Nifty 50 index closed 1.63% higher at 17,359.75. The S&P BSE Sensex rose 1.78% to 58,991.52. Both the indexes logged their best day in since Nov. 11.
All 13 major sectoral indexes advanced. The heavyweight financials and IT indexes jumped nearly 1.5% and 2.5%, respectively.
Forty-three of the Nifty 50 constituents logged gains. Reliance Industries Ltd, which has the biggest market capitalisation and weightage on the Nifty 50 index, climbed over 4.3%, the most in over 10 months, after starting a demerger of its financial services business.
The recent correction has rendered valuations attractive, according to analysts. Global brokerage firm Morgan Stanley upgraded India to “equal weight” from “under weight,” citing economic resilience and favourable valuations.
Among individual stocks, defence-linked stocks such as Bharat Electronics Ltd, Bharat Dynamics Ltd , Cochin Shipyard Ltd and Garden Reach Shipbuilders & Engineers Ltd surged after bagging orders from the Ministry of Defence.
Va Tech Wabag Ltd’s shares climbed nearly 5% after the company-led joint venture won a 44 billion rupee ($535.4 million) order.
Nestle India Ltd jumped over 3% on positive growth view from analysts and on reports that the company is among final bidders for India’s Capital Foods.
Investors are awaiting a set of macroeconomic readings, including current account data and external debt.
Personal consumption expenditures (PCE) data for the United States, the Fed’s preferred indicator of inflation, is also due later in the day.
“We expect global markets to stabilise,” said G Chokkalingam, founder and head of research at Equinomics Research and Advisory.
“The institutions in both the U.S. and Europe are quick enough to support the banking system from the current turmoil.”
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)