(Updates closing levels in paragraph 2; adds WPI data in
paragraph 6 and fresh analyst quote)
By Bharath Rajeswaran
BENGALURU, May 15 (Reuters) - Indian shares advanced on
Monday, helped by strong earnings from Tata Motors Ltd and as
the first drop in the country's wholesale price index in nearly
three years added to the optimism over cooling retail inflation.
The Nifty 50 closed 0.46% higher at 18,398.85, while
the S&P BSE Sensex rose 0.51% to 62,345.71.
Twelve of the 13 major sectoral indexes advanced, with auto and realty stocks rising 0.7% and
4.32%, respectively.
Tata Motors gained 2.89%, powering the rise in the
auto index, after posting record revenue and setting its first
dividend in 7 years.
DLF rose 7.39% to a 52-week high and boost realty
stocks after reporting a surge in fourth-quarter profit.
On the economic front, India's annual wholesale price index
(WPI) fell 0.92% in April, from the same month a year earlier,
having risen 1.34% in March and compared with economists'
expectations of a fall of 0.20%.
That came after data on Friday showed retail inflation eased
to an 18-month low in April. Economists now expect the central
bank to pause" its interest rate hikes.
"India's macroeconomic performance is showing further signs
of improvement, and this is providing a major fillip to the
markets, said Shrikant Chouhan, head of equity research (retail)
at Kotak Securities.
"Positive Asian and European market cues coupled with a
further drop in (India's) wholesale inflation numbers fuelled a
major rally."
World stocks rose on cautious optimism ahead of this week's
deliberations over the U.S. $31.4 trillion debt ceiling, a raft
of economic data due and a bevvy of central bankers lined up to
hint about whether further rate hikes await. Among stocks, Nifty 50-member Cipla Ltd lost
nearly 2% after the drug maker reported a smaller-than-expected
profit.
Meanwhile Avenue Supermarts Ltd , which operates
the DMart chain of retail stores, fell over 4% after its
quarterly profit margin contracted.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio
D'Souza, Janane Venkatraman and Dhanya Ann Thoppil)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.