Indian shares join global rebound as tension eases RUPEE ENDS HIGH ON INFLOWS, DOLLAR SALES BY STATE-RUN BANKS
The benchmarks lost about 1.6% last week due to worries over the West Asia conflict
Indian shares closed higher on Monday, tracking a rebound in global markets due to easing worries over the escalation of tensions in the Middle East.
The NSE Nifty 50 rose 0.86% to close at 22,336.40, while the S&P BSE Sensex ended 0.77% higher to 73,648.62.
The benchmarks lost about 1.6% last week due to the worries over the Middle East conflict and a delay in U.S. rate cuts.
Those worries pushed Asian shares down 3.7% last week. They gained 0.9% on Monday, while gold prices dipped as overall risk sentiment improved over the weekend.
“There was no followthrough escalation in geopolitical tensions in the Middle East as Iran attempted to defuse tensions,” OCBC analysts said in a note. Wipro gained 2% after the software services provider reported a bigger-than-expected quarterly revenue.
State-run oil marketing companies Bharat Petroleum Corp , Hindustan Petroleum Corp and Indian Oil Corp, which rely on imported crude, gained 2.5%-3.5%, as oil prices eased.
HDFC Bank, which has the highest weight on the Nifty 50 dropped 1.25% after reporting a smaller-than-expected quarterly profit due to higher provisions.
“After the profit-booking due to weak global cues last week, the upcoming key earnings and management commentaries will remain the key triggers for domestic markets,” said Mohit Khanna, fund manager at Purnartha Investment Advisors.
Reliance Industries, the second-heaviest Nifty 50 stock, ended 0.78% higher. It is due to report after the bell.
The more domestically-focussed small- and mid-caps rose 1.31% and 0.82%, respectively.
“The sustainability of the rebound in small- and mid-caps in April is dependent on earnings growth,” said Abhijit Bhave, managing director and chief executive of Equirus Wealth.
The Indian rupee rose on Monday aided by likely equity inflows and dollar sales from state-run banks, traders said.
The rupee closed at 83.3625 against the U.S. dollar, up 0.1% from its close at 83.47 in the previous session. The currency had dropped to a record low of 83.5750 on Friday but has since recovered modestly helped by the central bank’s intervention and as fears of escalation in the Middle East conflict ebbed.
Both foreign and state-run banks were spotted offering dollars on Monday, which helped lift the rupee, a foreign exchange salesperson at a private bank said.
The dollar index was little changed at 106.1 and most Asian currencies were rangebound as risk aversion eased after Iran played down the impact of an Israeli drone attack and indicated it had no retaliation plans.