Indian shares track Asian peers higher; auto stocks rally

Gardeners work outside the National Stock Exchange (NSE) building in Mumbai, India, August 16, 2018. REUTERS/Francis Mascarenhas

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BENGALURU, April 26 (Reuters) – Indian shares followed Asian peers higher on Tuesday, snapping two sessions of sharp losses, with investors awaiting a set of earnings from domestic companies before placing fresh bets.

The NSE Nifty 50 index (.NSEI) was up 1.32% at 17,179.55, as of 0440 GMT, while the S&P BSE Sensex (.BSESN) rose 1.31% to 57,321.57.

Both the indexes fell more than 1% in each of the last two sessions as prospects of aggressive rate hikes by the U.S. Federal Reserve and surging inflation hit risk appetite.

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“We are seeing a phase of consolidation, our fundamentals have not changed and we will largely react in line with global stocks. So, we are seeing a rebound,” said Ajit Mishra, vice president, research at Religare Broking.

“Unless we see some dramatic improvement on the global front, we don’t expect a major directional move in domestic markets.”

Asian shares rose on Tuesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) adding 0.8%, though global growth fears stoked by China’s stringent COVID-19 curbs and rate hike bets weighed on stocks.

In India, all major Nifty sub-indexes climbed, with the Nifty Auto index (.NIFTYAUTO) leading the pack with its 2.4% rise.

Car maker Maruti Suzuki India (MRTI.NS), which is set to post results later this week, rose 2% to a near eight-week high. Good earnings, positive demand outlook and new model newsflow should drive outperformance, Morgan Stanley said in a note.

Mahindra CIE Automotive (MAHN.NS) surged 10% after its March-quarter net profit jumped.

Nifty’s fast-moving consumer goods sub-index (.NIFTYFMCG) jumped 1.7%, supported by a 4% surge in beverage maker United Breweries (UBBW.NS) ahead of results. The sub-index had shed 1.6% in the previous session.

Nifty components Bajaj Finance (BJFN.NS) and HDFC Life Insurance Co (HDFL.NS) were up 2.4% and 0.9% respectively, ahead of their March-quarter results.

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Reporting by Chandini Monnappa in Bengaluru; Editing by Vinay Dwivedi and Uttaresh.V

Our Standards: The Thomson Reuters Trust Principles.

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