(Updates levels, adds analysts' comments)
By Bharath Rajeswaran
BENGALURU, March 3 (Reuters) - Indian shares rose on
Friday after GQG Partners' $1.87 billion investment in Adani
stocks helped markets look past rate-hike worries for the
moment, turning foreign investors into buyers after a
six-session hiatus.
The Nifty 50 index rose 1.18% to 17,526.10, while
the S&P BSE Sensex gained 1.16% to 59,593.68 as of
10:18 a.m. IST.
All the 13 major sectoral indexes rose. Financials and information technology added 1.4% and
0.8%, respectively.
A 10% jump in Adani Enterprises helped the metal
index advance 2%. The firm has over 10% weightage on
the metal index.
All Adani stocks surged after U.S. boutique investment firm
GQG Partners Inc bought shares worth $1.87 billion in
four of the group companies, the first major investment in the
Indian conglomerate since a short-seller's critical report
sparked a stock rout.
"The funding will assuage concerns about Adani Group's
ability to raise funding for repayment of loans," Aditya Mongia
and Teena Virmani of Kotak Institutional Equities said.
Broader Asian markets were also up on Friday, after a higher
overnight close in Wall Street equities.
Foreign institutional investors (FII) bought a net
127.71 billion rupees worth of Indian equities on Thursday,
aided by investment in Adani group companies.
However, some analysts warned broader rate-hike worries
still loomed.
"While the investment in Adani group stocks is positive for
sentiment... global rate-hike concerns will continue to pile the
pressure on markets in the near term," said Narendra Solanki,
head of equity research at Anand Rathi Shares and Stock Brokers.
Among individual stocks, MOIL rose over 2% after
reporting a 10% jump in the production of manganese ore in
February. Natco Pharma jumped nearly 5% after company said
it will consider proposal to buy back shares in a board meeting
on March 8. ($1 = 82.4900 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Eileen Soreng and Nivedita Bhattacharjee)
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