Indian stocks reverse course to end above 1%, helped by IT stocks, Reliance

A broker reacts while trading on his computer terminal at a securities brokerage firm in Mumbai, India, February 1, 2020. REUTERS/Francis Mascarenhas

BENGALURU, March 22 (Reuters) – Indian stocks recorded a midday reversal to end up more than 1% on Tuesday, helped by gains in information technology heavyweights and conglomerate Reliance Industries ( RELI.NS).

The blue-chip NSE Nifty 50 Index (.NSEI) closed up 1.16% at 17,315.50, while the benchmark S&P BSE Sensex Index (.BSESN) rose 1.22% to finish at 57,989.30.

Both indices had lost nearly 1% on Monday due to higher oil prices and extended those losses into the first half of the current session.

However, a slight pullback in crude prices, buying in defensive information technology stocks and a 2.6% gain in market leader Reliance helped lift the stock.

The Nifty IT Index (.NIFTYIT) added 1.96%, only its third session of gains in eight, with Tech Mahindra (TEML.NS) finishing as the best percentage gainer on the Nifty 50.

Investors also ignored the domestic inflation implications of higher oil prices. On Monday, the central bank governor said inflation is expected to moderate going forward despite “incredibly uncertain” global prices. Read more

State-controlled fuel retailers in India, which is the world’s third-largest oil consumer and importer, will raise petrol and diesel prices at the pump for the first time since November, two sources told Reuters on Monday. dealers. Read more

Hindustan Petroleum Corp (HPCL.NS), Indian Oil Corp (IOC.NS) and Bharat Petroleum Corp (BPCL.NS) gained 1.4% to 3.1%.

Among the few sub-indexes to end in the red was the Nifty FMCG Index (.NIFTYFMCG), which fell 0.73%. Consumer giant Hindustan Unilever (HLL.NS) lost 2.8% and was the biggest percentage loser in the Nifty 50.

Shares of Future Group companies fell between 11.2% and 14.9%. Indian lenders are expected to initiate debt collection proceedings against Future Retail this week. Read more

Overall, Asian and European equities were a little higher as investors adjusted their expectations for rate hikes following hawkish comments from the US Federal Reserve.

Reporting by Anuron Kumar Mitra in Bengaluru; Editing by Subhranshu Sahu, Uttaresh.V and Krishna Chandra Eluri

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