Monday, June 5, 2023
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IT stocks power Indian shares amid improved global cues

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By Bharath Rajeswaran
BENGALURU (Reuters) -Indian shares advanced on Friday, led by information technology (IT) stocks tracking a rise in U.S. peers, while improved global cues also lent support.

The blue-chip Nifty 50 index was up 0.37% at 18,388.05 as of 10:47 a.m. IST, while the benchmark S&P BSE Sensex rose 0.37% to 62,103.97.

Ten of the 13 major sectoral indexes advanced, with the high-weightage IT rising 1%, and all 10 constituents logging gains. Tech Mahindra Ltd and Wipro Ltd were among the top Nifty 50 gainers.

The rise in IT stocks followed a sharp rise in the tech-heavy Nasdaq overnight, fuelled by strong earnings of chip maker Nvidia.

Progress on U.S. debt ceiling talks ahead of the June 1 deadline also supported the sentiment. Asian markets edged higher. [MKTS/GLOB]

“There is no obvious trigger for valuation de-rating in Indian markets as the monetary tightening cycle comes to an end,” Christopher Wood, global head of equity strategy at Jefferies, said in his weekly newsletter.

Wood added that it was only a matter of time before the Sensex touched the 100,000 level and remained optimistic about a capex cycle in India.

Among individual stocks, Reliance Industries Ltd, which has the largest market capitalisation in the Nifty 50 index, jumped nearly 2%. The company’s unit Reliance Consumer Products completed the acquisition of a 51% stake in Lotus Chocolate.

Shares of National Aluminium Company Ltd jumped over 3% after analysts reiterated a bullish view on the aluminium maker after the company reported core profit that beat estimates.

On the other hand, Oil & Natural Gas Corporation Ltd fell nearly 2% and was the top Nifty 50 loser ahead of reporting its March-quarter earnings.

The Nifty 50 has risen over 1% so far this week, led by metal stocks .NIFTYMET, which rose 5% on a surge in Adani stocks.

($1 = 82.7176 Indian Rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema and Sohini Goswami)

Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.

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