Indian Shares Rise On Tech Rally

The NSE Nifty 50 index (.NSEI), with most of its major sub-indexes in the positive territory, was up 0.7% at 17,957.55, as of 0458 GMT, and the S&P BSE Sensex (.BSESN) rose 0.7% to 60,211.71

Indian shares were on track for a third straight session of gains on Monday, boosted by technology stocks, while investors awaited domestic inflation data for cues on the pace of the central bank’s rate hikes.

The NSE Nifty 50 index (.NSEI), with most of its major sub-indexes in the positive territory, was up 0.7% at 17,957.55, as of 0458 GMT, and the S&P BSE Sensex (.BSESN) rose 0.7% to 60,211.71.

The Nifty’s IT index (.NIFTYIT) rose as much as 2% to hit more than three-week high. Infosys Ltd (INFY.NS) and Tech Mahindra Ltd (TEML.NS) were among the top performers on the benchmark Nifty 50, climbing 1.8% and 2%, respectively.

Fall in global oil prices aided gains. India, the world’s third-largest importer of oil, benefits from a fall in prices as it brings down imported inflation.

Crude prices fell over prospects of further interest rate hikes in the United States and Europe, and demand concerns following the imposition of COVID-19 restrictions in China.

“Overall, the sentiment has been good because oil prices have come down, so that augurs well for our market and global markets have been positive,” said Neeraj Dewan, director at Quantum Securities.

Investors will closely watch domestic and U.S. inflation data this week for signs, if inflation has moderated or peaked, Dewan said.

Markets are pricing in 75 basis points rate hike by the U.S. Federal Reserve, but not pricing in back-to-back increases and that indication will be provided by the inflation data, Dewan added.

(Reuters)