By Nishit Navin
BENGALURU (Reuters) -Indian stocks inched higher on Monday, helped by gains in heavyweight information technology shares buoyed by a rally in Tech Mahindra after the company named a new chief executive, while investors waited for inflation data due later in the day.
The Nifty 50 index rose 0.3% to 17,460, while the S&P BSE Sensex added 0.2% to 59,474.30, as of 10:25 a.m. IST.
Meanwhile, U.S. authorities on Sunday announced plans to limit the fallout from the collapse of Silicon Valley Bank (SVB), easing fears of contagion.
The announcement has led to an improvement in market sentiment, said Gaurav Dua, senior vice-president and head of capital market strategy at Sharekhan.
Indian analysts don’t expect a ripple effect of the SVB crisis on the domestic financial system.
The SVB crisis has near zero impact on Indian banking, V. K. Vijayakumar, chief investment strategist at Geojit Financial Services, said, adding that it is unlikely to rattle markets for long.
Banking stocks advanced 0.1%.
Shares of Indian IT services provider Tech Mahindra jumped over 10% after it named an Infosys veteran Mohit Joshi as the new chief executive officer after incumbent C.P. Gurnani retires in December.
The leadership changed spurred the tech stocks, sending them up 0.6%. IT stocks have the highest weightage in the benchmark Nifty index after financials.
Meanwhile, Indian investors -await retail inflation data, which likely eased to 6.35% in February, though above the Reserve Bank of India’s upper threshold for a second straight month, a Reuters poll of 43 economists showed.
Yes Bank Ltd shares fell as much as 13% after the company said locked-in shares of investors have been released on March 13, when the period expired as a part of the lender’s restructuring.
Shares of IndusInd Bank Ltd fell 6.3% after analysts said the RBI’s approval of the tenure of re-appointment of the private lender’s CEO came in below the proposed period.
($1 = 81.9600 Indian rupees)
(Reporting by Nallur Sethuraman and Nishit Navin in Bengaluru; Editing by Janane Venkatraman and Dhanya Ann Thoppil)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.