By Manvi Pant
BENGALURU (Reuters) -Indian shares reversed early losses to edge higher on Wednesday, as gains in metal stocks led by Hindalco helped offset a slump in Axis Bank following a contraction in the lender’s quarterly margins.
The blue-chip NSE Nifty 50 rose 0.46% to 21,336.05 points and the S&P BSE Sensex was up 0.44% at 70,677.99, as of 10:10 a.m. IST.
The indexes saw a steep sell-off in the final hours of the previous session weighed down by financial stocks.
The Nifty metal index rose 1.7% on Wednesday, led by a 4.4% jump in aluminium producer Hindalco Industries.
Helping the mood was optimism that China, the biggest metals consumer, will offer support for its stock markets after a recent onslaught. Aluminium prices were also higher as traders assessed the risks of potential European Union sanctions on the metal from Russia. [MKTS/GLOB]
Hindustan Copper, SAIL, National Aluminium and NMDC gained more than 3% each.
“China’s expected stimulus to boost its economy is leading to a rise in global metal prices because of which we are seeing the rub-off effect on metal stocks today,” said Sneha Poddar, associate vice president at Motilal Oswal Financial Services.
Meanwhile, private lender Axis Bank slumped as much as 6.3% to a near two-month low after reporting a contraction in margins for the third quarter. The stock was last trading down 2.9%.
Top private lender HDFC Bank , which declined in early trade to take its losses post disappointing earnings last week to nearly 18%, reversed course to trade up 1%.
Blue-chip firms Bajaj Auto , Tech Mahindra , Tata Steel and Indian Oil were up between 0.8% and 1.7% ahead of their quarterly results.
(Reporting by Manvi Pant in Bengaluru; Editing by Sohini Goswami)
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