Indian shares begin 2023 on a positive note on metals boost
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Indian shares rose on Monday, the first trading session of 2023, helped by an uptick in metals and financials.
The Nifty 50 index was up 0.41% at 18,180.50 as of 10:48 a.m. IST, while the S&P BSE Sensex rose 0.43% to 61,103.38.
Most of the major sectoral indexes logged gains, with metals and high-weightage financials rising 1.8% and 0.8%, respectively.
"COVID is the major monitorable in the very near term," said Yogesh Nagaonkar, founder and CEO of Rowan Capital Services, adding that banking stocks would likely outperform over the next few sessions on strong earnings outlook.
China announced plans to raise export tariffs on aluminium from Jan. 1 in a bid to improve domestic demand, which analysts said will aid market-share growth for Indian companies.
Demand for metals would improve due to China's reopening as well, analysts added, if the COVID situation remains manageable in the world's second-largest economy.
Asian markets were trading mixed, with the MSCI Asia ex-Japan index rising 0.09%. [MKTS/GLOB]
The International Monetary Fund's (IMF) managing director warned that 2023 would be a tougher year for the global economy as all the major engines of global growth–United States, China and Europe–are experiencing weakening activity.
Capping gains in domestic equities was crude oil, which rose on year-end holiday travel, with Brent crude futures at around $86 per barrel. Higher oil prices hurt oil-importing countries like India, where crude constitutes the bulk of the country's import bill. [O/R]
Thirty-two of the Nifty 50 constituents advanced, with Tata Steel and Hindalco rising over 2.5%.
Among individual stocks, Tata Motors jumped nearly 2% and was among the top Nifty 50 gainers, after the company reported a 10% rise in domestic sales in December.
($1 = 82.7170 Indian rupees)
