By Bharath Rajeswaran
BENGALURU (Reuters) -Indian shares advanced on Friday, aided by high weightage information technology (IT) and financials stocks, as investors find valuations attractive after a recent correction, ahead of key economic data to gauge the path for future rate hikes.
The Nifty 50 index was up 0.95% at 17,241.50, as of 11:00 a.m. IST. The S&P BSE Sensex rose 0.98% to 58,529.63.
All 13 major sectoral indexes advanced. The heavyweight financials and IT indexes jumped over 1% each.
Reliance Industries, the company with the biggest market capitalisation and weightage on the Nifty 50 index, climbed over 3.5% after starting the process of demerger of its financial services business.
Thirty-nine of the Nifty 50 constituents logged gains. The Nifty is on course to extend losses for the fourth month, its longest losing streak since 2001.
The recent correction has rendered valuations attractive, according to analysts. Global brokerage firm Morgan Stanley upgraded India to “equal weight” from “under weight,” citing economic resilience and favourable valuations.
Among other individual stocks, Bharat Electronics surged over 7% after the company bagged multiple orders from the Ministry of Defence.
Va Tech Wabag shares surged nearly 9% after the company-led joint venture won a 44 billion rupees order.
Investors are awaiting a set of macroeconomic readings, including current account data and external debt.
Data on personal consumption expenditures (PCE) in the United States, the Fed’s preferred indicator of inflation, is also due later in the day.
“We expect global markets to stabilise,” said G Chokkalingam, founder and head of research at Equinomics Research and Advisory. “The institutions in both the U.S. and Europe are quick enough to support the banking system from the current turmoil.”
However, markets are likely to witness side-ways movement for the next few months, until corporate earnings improve, two analysts said.
($1 = 82.0670 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru;Editing by Nivedita Bhattacharjee, Sonia Cheema and Dhanya Ann Thoppil)
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