Mumbai: India’s stock markets rose on Thursday, heading for their second straight day of gains, as stabilising crude oil prices lifted mining and energy firms, while stronger Asian stocks boosted investor appetite for riskier assets.
Asian stocks rose across the board as crude oil steadied on hopes that big producers will cap output.
Minutes from the US Federal Reserve also showed policymakers were divided over how to interpret the financial market volatility, suggesting it was backing away from the four rate hikes that were signaled for this year in December.
Foreign investors sold a net $115.42 million (Rs 791 crore) of Indian shares on February 16, taking this year’s outflow to $2.43 billion.
“Any kind of move on the global side wherein the Fed comforts the market further, will have a positive rub-off on our market,” said Pankaj Pandey, head of research at brokerage ICICI Direct.
“Liquidity globally is under stress at this time, and what we have seen is that typically when crude is making new lows, outflows sort of pick up.”
The broader NSE Nifty rose 0.8 per cent to 7,165.45, after hitting a high of 7,215.10 intra-day, while the benchmark BSE Sensex gained 0.9 per cent to 23,594.24 by 1.10 p.m.
Dr. Reddy’s Laboratories rose more than 5 per cent after its board on Wednesday approved a share buyback for up to 15.69 billion rupees.
Railway sector-linked stocks such as Kalindee Rail and Alstom jumped on media reports which said India’s Cabinet Committee on Economic Affairs had approved the construction of six railway lines and a railway bridge.
Public-sector banks such as State Bank of India, Punjab National Bank and Bank of Baroda shed most gains to trade 0.3 to 0.7 per cent lower.
SBI has recognised 50 per cent of its non-performing assets during its asset quality review in the December quarter, Chairman Arundhati Bhattacharya told CNBC-TV18 on Thursday.
Monsanto India declined 2.3 percent after the Competition Commission of India (CCI) ordered investigation into a Monsanto joint venture over whether the company abused its dominant position as a supplier of genetically modified cotton seeds.