Indian shares touch six-week high on Russia-Ukraine optimism

Tata Coffee

30/03/2022 05:49

(Updates shares, adds details, analyst's comment)
    BENGALURU, March 30 (Reuters) - Indian shares rose to their
highest since mid-February on Wednesday, led by gains in
automakers and heavyweight financials, as appetite for risky
assets improved globally on signs of progress in Ukraine-Russia
peace talks.
    The NSE Nifty 50 index  .NSEI  climbed 0.72% to 17,449.75,
as of 0423 GMT, while the S&P BSE Sensex  .BSESN  rose 0.81% to
58,412.47, with both indexes on track for a third straight day
of gains.
    Most global equity markets reacted positively to Russia's
promises on Tuesday to scale down its military operations near
Kyiv and surrounding cities.  MKTS/GLOB 
    "The market mood is seen improving considerably in early
trades amid progress in Russia-Ukraine peace talks and oil
prices falling...," Prashanth Tapse, vice president (research)
at Mehta Equities, wrote in a note. 
    India's blue-chip indexes have more than recovered their
losses that were triggered by a spike in oil prices following
Russia's invasion of Ukraine. Meanwhile, MSCI's broadest index
of Asia-Pacific shares outside Japan  .MIAPJ0000PUS  is still
nearly 4% below levels seen before the invasion.
    "For the next two trading sessions, there is a bright chance
the market may witness a positive tone as Window Dressing could
be the preferred theme at Dalal Street as the current financial
year comes to an end on Thursday," Tapse said.
    In Mumbai, the Nifty Auto index  .NIFTYAUTO  gained 1.4%,
led by a 3% rise in Hero MotoCorp  HROM.NS  after the
two-wheeler maker hiked prices and denied a report that it made
bogus expenses. 
    Tata Consumer Products  TACN.NS  jumped 4.9% after it said
it would merge Tata Coffee  TACO.NS  with itself. Tata Coffee
shares surged 12.6% to a two-month high.
    Heavyweight lenders Bajaj Finserv  BJFS.NS  and Bajaj
Finance  BJFN.NS  climbed 3.6% and 3.1%, respectively.
    Oil and Natural Gas Corp  ONGC.NS  slid 4.9% to a two-week
low after the oil producer said India would sell a stake of up
to 1.5% in the company.
    The Nifty Metal index  .NIFTYMET  slipped 2.1% as metal
prices eased.

 (Reporting by Chris Thomas, additional reporting by Gaurav
Dogra in Bengaluru; Editing by Subhranshu Sahu and Anil D'Silva)
 ((chris.thomas@thomsonreuters.com; +91-80-6749-8695;))