India Stocks: Indian shares rise on hopes of Fed rate pause, China stimulus

Maharashtra Seamless

04/09/2023 05:58

(Updated at 10:21 a.m. IST)
    By Bharath Rajeswaran
       BENGALURU, Sept 4 (Reuters) - 
    Indian shares advanced on Monday, led by metals on further
support for property sector by China and on rising expectations
of a U.S. Federal Reserve rate pause later this month.
  
    The Nifty 50  .NSEI  index was up 0.10% at 19,452 as of 
10:21 a.m. IST, while the S&P BSE Sensex  .BSESN  rose 0.07% to
65,432.50.
        Eight of the 13 major sectoral indexes logged gains.
Metals  .NIFTYMET  rose 2.5% on fresh measures by China to
support its property sector. China is the top producer and
consumer of metals. Tata Steel  TISC.NS  and Hindalco  HALC.NS 
added more than 3% each, topping the Nifty 50.
        The more domestically-focussed small-caps  .NIFSMCP100 
and mid-caps  .NIFMDCP100  advanced 1% and 0.6%, respectively,
sustaining outperformance over the blue-chips.
        The small-caps and mid-caps have gained over 28% and
26%, respectively, so far this year, more than thrice as much as
a 7.5% rise in benchmark Nifty 50 index, on sustained retail
inflows.
        "The small-cap and mid-cap space will continue to do
well because of hopes of healthy returns, which have attracted
interest from investors with a short-term time horizon," said
Siddharth Bhamre, research head at Religare Broking.
         There are pockets in broader markets with valuation
comfort, Bhamre added.
  
        Rising unemployment in the U.S., which heightened hopes
of a Fed rate pause later this month as well as strong domestic
macroeconomic data, including gross domestic product(GDP) and
expansion in factory activity bolstered sentiment in the
markets, two analysts said. 
    Among individual stocks, Coal India  COAL.NS  climbed 3%
after production in August rose 13.2% year-on-year. 
        Maharashtra Seamless  MHSM.NS  climbed 4% on bagging
orders of 1.57 billion rupees from Oil India and Indian Oil
Corporation.
        Moil  MOIL.NS  rose 2% after 
    reporting
     a 53% year-on-year jump in production in August.
  
        
  
        
  
        
  
    

 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Eileen Soreng and Dhanya Ann Thoppil)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))