Indian shares rise on auto, financials boost; CPI data awaited

Equitas Small Finance Bank

12/07/2021 06:44

By Shivani Singh
    BENGALURU, July 12 (Reuters) - Auto and financial stocks
boosted Indian shares on Monday, ahead of the release of retail
inflation data for June, with investors preparing for major
corporate earnings due later in the week.
    As of 0505 GMT, the blue-chip NSE Nifty 50 index  .NSEI  was
up 0.63% at 15,788.65 and the benchmark S&P BSE Sensex  .BSESN 
rose 0.59% to 52,693.39. 
    "The more important factors to watch out for would be
June-quarter results and the panning out of a third wave of
COVID-19", said Aishvarya Dadheech, fund manager at Ambit Asset
Management in Mumbai.
    Among several companies to report results this week, eyes
will be on software services major Infosys'  INFY.NS  numbers
due on Wednesday. 
    The Nifty Bank index  .NSEBANK  added 0.79%, with ICICI Bank
 ICBK.NS  and State Bank of India  SBI.NS  rising 1.7% and 1.3%,
respectively, to be among the top boosts to the sub-index.
    Financial stocks received a boost from the Reserve Bank of
India's decision to allow reverse mergers of banks older than
five years with their holding companies.
    Equitas Holdings Ltd  EQHL.NS  surged 20% after it initiated
steps to merge with its unit Equitas Small Finance Bank
 EQUI.NS . Ujjivan Small Finance Bank  UJJI.NS  rose 6.3% on its
move to merge with holding company Ujjivan Financial Services
Ltd  UJVF.NS .
    The Nifty Auto index  .NIFTYAUTO , up 0.92%, was set to snap
a four-day losing streak. Shares of the country's top automaker
Maruti Suzuki  MRTI.NS  jumped 2% as the company announced a
price hike for one of its bestselling cars.
    Sentiment was aided by a relief rally in Asian peers as U.S.
stocks hitting all-time highs and China's policy easing calmed
jitters on global growth.  MKTS/GLOB 
    Investors' focus is on the country's retail inflation, which
likely accelerated to a seven-month high in June, staying above
the central bank's comfort zone for a second straight month, a
Reuters poll showed.  urn:newsml:reuters.com:*:nL3N2OI3EF
    Meanwhile, the Indian rupee strengthened 0.07% against the
dollar to 74.43 rupees on Monday, as of 0452 GMT.
    

 (Reporting by Shivani Singh in Bengaluru; editing by
Uttaresh.V)
 ((ShivaniSingh1@thomsonreuters.com; +91 89 6969 2349))