Indian shares settle higher as IT, auto stocks gain
BENGALURU - Gains in IT stocks helped Indian shares close higher for a second straight session on Tuesday, with the auto sector advancing on strong monthly sales figures.
The NSE Nifty 50 index ended 1.07% higher at 14,919.10, while the S&P BSE Sensex closed 0.9% higher at 50,296.89.
Both the indexes added 1.5% on Monday as a halt in the recent bond markets sell-off buoyed riskier assets, while an expansion of a vaccination drive at home and upbeat domestic economic growth also supported sentiment.
Forty-three of the 50 stocks on the Nifty closed in positive territory on Tuesday, with IT shares underpinning the gains.
Infosys and Tata Consultancy Services gained 3.2% each, while the broader Nifty IT index closed 3.04% higher.
The Nifty auto index rose the most among sectoral indices, ending up 3.19%.
Tata Motors firmed 5.3% after the automaker on Monday reported a 51% jump in overall domestic sales for February, with its monthly total passenger vehicle sales rising 119%, the highest in nearly 9 years.
"February auto data indicates a sustained recovery in trucks while PVs (passenger vehicles) continued to surprise positively with double digit YoY growth," brokerage Morgan Stanley said in a note.
Nifty's Smallcap100 and Midcap 50 indexes closed up 1.2% and 1.7%, respectively. Both the indexes have outperformed the benchmark this year with a gain of more than 17% each.
Meanwhile, India's trade deficit in goods widened to $12.88 billion in February from $10.16 billion from a year ago, preliminary data released by the government late on Tuesday showed.
Broader Asian markets were lower after China warned about the risk of asset bubbles in foreign markets.
