Indian shares hit record highs on metals rally, dovish Fed prospects
BENGALURU (Reuters) – Indian shares hit record highs on Monday, boosted by automobile and metals’ stocks, with sentiment broadly supported by Federal Reserve Chair Jerome Powell’s signal that the U.S. central bank would remain patient in winding down its stimulus.
The blue-chip NSE Nifty 50 index climbed 1.03% to 16,877.65 by 0511 GMT and was set for a sixth straight session of gain. The benchmark S&P BSE Sensex was 0.95% higher at 56,658.79.
“Sentiment is extremely bullish and there is a possibility of hitting more records highs. There was a little bit of apprehension on the Fed’s stance but that is now out of the way. So, we expect this liquidity flow and investor interest to continue for some time,” said Samrat Dasgupta, CEO of Esquire Capital Investment Advisors.
Aluminium and copper producer Hindalco Industries and automaker Tata Motors were among the top performers on the Nifty 50 index, rising more than 2% each.
Bharti Airtel rose as much as 2.4% after the telecom firm said it plans to raise up to 210 billion rupees ($2.86 billion) through a sale of shares to existing shareholders.
Auto parts suppliers Bharat Forge, Sona BLW Precision Forgings, and Sandhar Technologies jumped 6.2%-13.7% after the Economic Times reported bit.ly/3yuigWm U.S. electric-car maker Tesla Inc was in talks with at least three local companies to source critical electronic, electrical and mechanical components as part of its plans to enter the Indian market.
Meanwhile, broader Asian shares rose after Powell struck a dovish tone during his long-awaited speech, although investors remained cautious about growth prospects in China. [MKTS/GLOB]
Looking ahead, India’s GDP data is set to be released on Tuesday. The country’s economic growth likely touched a record high in the quarter through June, according to a Reuters poll published last week.
($1 = 73.5250 Indian rupees)
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