($1 = 82.8625 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)
+919769003463)) (Updates closing levels, adds analysts' comments)
BENGALURU, Feb 15 (Reuters) - Indian shares overcame a
lacklustre start to close higher on Wednesday, with the
benchmark Nifty reclaiming the 18,000 mark after three weeks,
helped by a recovery in IT stocks and as the return of foreign
investors continued.
The Nifty 50 index closed 0.48% higher at 18,015.85,
while the S&P BSE Sensex rose 0.40% to 61,275.09. Both
the indexes had fallen more than 0.4% earlier in the session.
Eleven of the 13 major sectoral indexes gained, with the
information technology (IT) index rising 1.13%.
The index was under pressure earlier in the session after
data showed U.S. retail inflation rose in January, fanning fears
of further rate hikes and slowing the economy of a country that
accounts for a bulk of revenue for Indian IT firms.
IT stocks have fallen about 20% since the start of 2022,
during which the Federal Reserve and other central banks started
their rate hike cycles to tame inflation. In that same period,
the Nifty has gained more than 5%.
"IT stocks have seen significant correction since the start
of 2022 and the valuations are extremely attractive," said
Gaurav Dua, head of capital market strategy at Sharekhan.
Foreign institutional investors (FIIs) have net bought 41.85
billion rupees ($505 million) of shares in the past three
sessions.
Still, they have net sold 442.51 billion rupees of shares so
far this year, with volumes jumping in the wake of the Adani
Group-sparked selloff.
"The emergence of FII-buying in domestic equities over the
last three sessions is a positive factor," said Anita Gandhi,
director at Arihant Capital Markets.
Among stocks, Eicher Motors jumped 4.27%, and was
among the top Nifty 50 gainers, after reporting a
better-than-expected rise in profit on higher sales of its Royal
Enfield motorcycles.
Adani Enterprises extended gains from the previous
session, rising 1.68%, a day after it reported a third-quarter
profit against a loss a year ago.
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