Indian shares up on autos, finance boost as inflation data comforts investors

Sunteck Realty

13/07/2021 06:28

By Shivani Singh
    BENGALURU, July 13 (Reuters) - Gains in banking and auto
stocks lifted Indian shares on Tuesday, as a
lesser-than-expected rise in June retail inflation helped put
stimulus pullback worries at ease amid a rally in global stocks.
 
    As of 0505 GMT, the blue-chip NSE Nifty 50 index  .NSEI  and
the benchmark S&P BSE Sensex  .BSESN  were up 0.48% each at
15,767.40 and 52,624.65 points, respectively.
    "Earlier there was a fear in the market that a higher rise
in inflation would cause a pullback in stimulus but those
worries have now been put to ease," said Saurabh Jain, assistant
vice president of research at SMC Global Securities Ltd in
Delhi.    
    "The rally happening in the global market is also providing
clarity as the Delta variant is not hurting markets in a major
way." 
    The Nifty realty index  .NIFTYREAL  was up 0.78% while the
Nifty Infra index  .NIFTYINFR  rose 0.49%. Both indexes were set
to gain for a third consecutive session and have added over
25.4% and 20.2% respectively, this year.
    "The rally in domestic markets is shifting towards real
estate, infrastructure and capital goods which have been in the
doldrums for many years," Jain said.
    ICICI Bank  ICBK.NS  shares rose 1.8% and HDFC Ltd  HDFC.NS 
gained 1.5%. The lenders were among the top boosts to the Nifty
Bank index  .NSEBANK  that added 0.61%.
    The Nifty Auto index  .NIFTYAUTO  was up 0.56%, helped by
gains in Jaguar Land Rover parent Tata Motors  TAMO.NS , which
was up 0.8%.
    In Mumbai trading, shares of Sunteck Realty  SUNT.NS  jumped
6.4% after the firm reported a rise in first-quarter pre-sales
bookings.  
    India's retail inflation rose less than expected in June,
strengthening the view that the central bank could keep policy
rates at current levels to support an economy hit hard by
COVID-19. Economists said the June inflation print was above the
upper range of the central bank's 2%-6% target, but price
pressures appeared to be easing.  urn:newsml:reuters.com:*:nL1N2OO0YL

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