By Bharath Rajeswaran
BENGALURU (Reuters) -Indian shares advanced on Wednesday, led by consumer stocks, ahead of the Reserve Bank of India’s monetary policy decision and on hopes of an interest rate pause by other major central banks.
The blue-chip Nifty 50 index was up 0.27% at 18,648.60 as of 10:06 a.m. IST, while the benchmark S&P BSE Sensex rose 0.18% to 62,903.50.
All the 13 major sectoral indexes logged gains, with high weightage financials and information technology rising 0.3% and 0.4%, respectively.
IT stocks slid in the previous session as fears of a global economic slowdown ratcheted. A sharp cut in the revenue guidance of U.S. software firm EPAM citing cautious client spending added to the concerns.
Fast-moving consumer goods index added 0.7% and was among the top sectoral gainers. Britannia Industries, Tata Consumer and Nestle India were among the top Nifty 50 gainers. Brokerage Jefferies predicts margin benefits at consumer staples firms to sustain amid falling input prices.
Global equities advanced ahead of rate decisions from the U.S. Federal Reserve, European Central Bank and Bank of Japan, due next week. The Fed is expected to abstain from raising rates in the light of key macroeconomic data. [MKTS/GLOB]
Investors also await the RBI’s monetary policy decision on June 8. The central bank is expected to leave its key interest rate unchanged this week and the rest of the year, a Reuters poll of economists showed.
“The expectations of a rate pause by RBI has triggered optimism in markets,” said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.
Analysts advised investors to remain focused on buying opportunities in sectors such as auto, FMCG, realty that are performing well.
Among individual stocks, Torrent Power jumped nearly 10% to a record high after signing a hydro-project deal with Maharashtra.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema and Dhanya Ann Thoppil)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.