India Stocks: Financials, IT aid Indian shares; Reliance jumps on demerger update

VA TECH WABAG

31/03/2023 06:36

(Updates levels, adds analysts' comments)
    By Bharath Rajeswaran
       BENGALURU, March 31 (Reuters) - 
    Indian shares advanced on Friday, aided by high weightage
information technology (IT) and financials stocks, as investors
find valuations attractive after a recent correction, ahead of
key economic data to gauge the path for future rate hikes. 
  
    The Nifty 50 index  .NSEI  was up 0.95% at 17,241.50, as of
11:00 a.m. IST. The S&P BSE Sensex  .BSESN  rose 0.98% to
58,529.63.
        All 13 major sectoral indexes advanced. The heavyweight
financials  .NIFTYFIN  and IT  .NIFTYIT  indexes jumped over 1%
each.
  
        Reliance Industries  RELI.NS , the company with the
biggest market capitalisation and weightage on the Nifty 50
index, 
    climbed
     over 3.5% after starting the process of demerger of its
financial services business. 
  
        Thirty-nine of the Nifty 50 constituents logged gains.
The Nifty is on course to extend losses for the fourth month,
its longest losing streak since 2001.
    The recent correction has rendered valuations attractive,
according to analysts. Global brokerage firm Morgan Stanley
upgraded India to "equal weight" from "under weight," citing
economic resilience and favourable valuations.
        Among other individual stocks, Bharat Electronics
 BAJE.NS  surged over 7% after the company bagged multiple
orders from the Ministry of Defence.  urn:newsml:reuters.com:*:nFWN3620EX
        Va Tech Wabag  VATE.NS  shares surged nearly 9% after
the company-led joint venture won a 44 billion rupees order.
 urn:newsml:reuters.com:*:nFWN3622EZ
    Investors are awaiting a set of macroeconomic readings,
including current account data and external debt.    
        Data on personal consumption expenditures (PCE) in the
United States, the Fed's preferred indicator of inflation, is
also due later in the day. 
    "We expect global markets to stabilise," said G
Chokkalingam, founder and head of research at Equinomics
Research and Advisory. "The institutions in both the U.S. and
Europe are quick enough to support the banking system from the
current turmoil."
        However, markets are likely to witness side-ways
movement for the next few months, until corporate earnings
improve, two analysts said.
  
        
  
        
  



($1 = 82.0670 Indian rupees)

 (Reporting by Bharath Rajeswaran in Bengaluru;Editing by
Nivedita Bhattacharjee, Sonia Cheema and Dhanya Ann Thoppil)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))