Indian shares opened higher on Friday, helped by a rise in financials and optimism that the rate hike cycle may be near its end after global central banks hinted at inflation easing, while the ongoing rout in Adani group stock capped gains.
The Nifty settled above the 17,850 mark after hitting day's low of 17,584.20 in mid-morning trade. Banks, financial services and consumer durables scrips were in demand. On the other hand, healthcare, pharma and oil & gas stocks declined. The BSE Sensex jumped 909.64 points or 1.52% to 60,841.88. The Nifty 50 index gained 243.65 points or 1.38% to 17,854.05
High weightage financials rose over 1% ahead of earnings of the country's largest lender State Bank of India and after clarification from life insurers SBI Life and HDFC Life, addressing investor concerns regarding the latest budget proposals.
Adani stocks slipped, extending the ongoing selloff in the conglomerate's stocks which has caused a rout of over USD 100 billion in market valuation after the Hindenburg report on Jan. 24, keeping a check on the upbeat mood.
31 of the Nifty 50 stocks rose with Titan , IndusInd Bank, Bajaj Finance, SBI Life and SBI among the top gainers.
The NSE has put Adani Enterprises, Adani Ports and Ambuja Cements under an additional surveillance measure (ASM) framework after the recent selloff.
The federal reserrve hiked the key interest rate by 25 basis points, while the ECB and BoE raised it by 50 bps each and signalled that the tide was turning against inflation.
The RBI is expected to raise the key policy repo rate by 25 bps at its policy meeting on Feb. 8, beginning the end of almost a year-long tightening cycle.
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