Financial, auto stocks lift Indian shares; Infosys top boost
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BENGALURU - Indian shares rose on Wednesday, extending a rally from the previous session, as Infosys led gains in the heavyweight information technology sector, while auto stocks snapped a five-day losing streak.
By 0512 GMT, the blue-chip NSE Nifty 50 index rose 0.37% to 15,155 and the benchmark S&P BSE Sensex rose 0.37% to 51,216.19. The Nifty closed up nearly 1% on Tuesday, while the Sensex ended the day with a 1.2% rise.
"Expectation of liquidity ballooning is keeping markets higher ... there is no reversal of equity funds flow," said Nirali Shah, head of equity research at Samco Securities in Mumbai.
"From a trading perspective, it is better to ride the momentum and ... go with the flow," Shah added.
Sentiment also got a lift as broader Asian markets bounced back from a two-month low after bond yields fell and concerns over inflation eased.
In domestic trading, nearly all major sectors rose.
The Nifty IT index was up 1.06%. Software services provider Infosys Ltd was the top boost to the Nifty 50, gaining 1%.
The Nifty Auto Index was up 1.11%, with Eicher Motors Ltd adding 3.1% that made it the top percentage gainer on the Nifty 50.
State-owned lender Bank of Baroda Ltd rose as much as 2%. The company will look for an investor in its credit card business and consider a potential listing for its insurance joint venture, its chief executive told Reuters on Tuesday.
Shares of solar panels and solar cells makers such as Indosolar Ltd and Borosil Renewables Ltd rose between 4.6% and 5.8%.
India will levy import tax on solar modules and cells from April next year to boost local manufacturing, Reuters reported on Tuesday.
Indian markets will be closed for a holiday on Thursday.
