Metal stocks boosted Indian shares on Wednesday, which tracked Asian peers to open higher, though persistent rate-hike fears created an overhang amid a lack of other major triggers.
The Nifty 50 index rose 0.64% to 17,415.15, while
the S&P BSE Sensex edged 0.60% higher to 59,316.12 as
of 10:55 a.m. IST.
Analysts, however, cautioned that Wednesday's moves were
likely temporary.
"An intermittent rally can certainly happen after the recent correction in the markets," said Anita Gandhi, director at Arihant Capital Markets, adding that for the gains to sustain, "clear triggers are needed".
The rise in domestic equities was in sync with an uptick in Asian peers after February manufacturing activity in the world's largest producer of metals, China, rose to over-a-decade-high levels on reopening.
The MSCI's broadest index of Asia-Pacific shares outside Japan rose over 1.5%. Metals climbed over 3%, with 14 of the 15 constituents logging gains. Adani Enterprises , Hindalco and Tata Steel were among the top Nifty 50 gainers. "The surge in China's manufacturing PMI indicates a rise in domestic consumption of commodities in the country, and is a major positive for the sector," Pallav Agarwal and Suman Kumar of Antique Stock Broking wrote in a note.
Markets were also parsing through details of India's latest
economic growth data, weighing it against concerns of a
prolonged high-interest rate cycle in the United States and
sustained foreign selling of domestic equities.
Among individual stocks, Max Ventures and Industries Ltd jumped nearly 5% after the National Company Law Tribunal (NCLT) approved resolution plan submitted by its real estate arm, Max Estates, for Boulevards Projects Private Ltd. Realty firm NCC Ltd climbed over 2% after the company said it received three orders aggregating upto 23.74 bln rupees ($287.9 mln) in Feb. 2023.
($1 = 82.6680 Indian rupees)
(Reporting by Bharath Rajeswaran and Nishit Navin in Bengaluru;
Editing by Dhanya Ann Thoppil; Nivedita Bhattacharjee)
