The index has gained about 1.7% so far this week after concerns over interest rate hikes and economic growth drove a two-week losing streak.
Indian shares bucked the trend on Thursday, as weak metal and oil prices propelled battered automakers to their best performance since April 2020. The NSE Nifty 50 gained 0.93% to 15,556.65, while the S&P BSE Sensex gained 0.86% to 52,265.72. The index has gained about 1.7% so far this week after concerns over interest rate hikes and economic growth drove a two-week losing streak. Boosting sentiment on Thursday was a further pullback in crude oil prices as investors assessed recession risks and the impact of higher interest rates on fuel demand. Cheaper oil tends to benefit oil importers like India.
Shrikant Chouhan, head of equity research (retail) at Kotak Securities, said: “The drop in crude oil prices has given the market some respite, although concerns over continued foreign selling and rising U.S. bond yields will continue to keep traders on edge. Analysts also said the central bank’s comments that inflation is expected to fall to 4% in 2023-24 supported market sentiment.
The Nifty Auto index was the best performing sub-index, surging 4.4%. Recession fears sent metals prices sharply lower, boosting automakers that have grappled with rising input costs for several quarters. The auto index fell about 6 percent this month to close in the previous session.
India’s largest automaker, Maruti Suzuki, was the biggest gainer on the Nifty 50, rising 6.3 percent to its highest level since late February. Truck maker Eicher Motors and two-wheeler maker Hero MotoCorp each rose 5.9 percent. Shares in Bajaj Auto rose 4.1% after the two- and three-wheeler maker said it would consider buying back shares on Monday after delaying the proposal last week. Route Mobile also surged 8.5% on a share repurchase program.
India’s largest company Reliance Industries fell for a second day, closing down 1.6 percent and capping Nifty’s gains.
(This story has not been edited by NDTV staff and was automatically generated from the syndicated feed.)
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