Indian stocks close at over 2-week high as tech and metal stocks gain

A man looks at a screen displaying budget information, on a facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, February 1, 2022. REUTERS/Francis Mascarenhas

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BENGALURU, June 27 (Reuters) – Indian stocks joined a rally in global stock markets to close at a more than two-week high on Monday, led by tech and metals stocks as lower oil prices dragged down temper inflation fears.

The NSE Nifty 50 Index (.NSEI) rose 0.85% to 15,832.05, and the S&P BSE Sensex (.BSESN) climbed 0.82% to 53,161.28, with both indexes gaining for a third consecutive session.

“While the change in mood was a major relief, optimism could remain for a few more sessions before the market turns volatile amid concerns about the global economy slowing due to rate hikes and exits. foreign funds,” said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.

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Worries over inflation and politics have sent benchmarks down about 4.5% each for the month so far, putting them on track for their worst month since the pandemic in March in 2020.

On Monday, the Nifty IT (.NIFTYIT) was Mumbai’s best-performing sub-index, jumping 2.3% to its highest level since June 10, boosted by a 2.8% rise in heavyweight Infosys ( INFY.NS).

The Nifty Metal Index (.NIFTYMET), which fell sharply this month, rose 1.5%.

Welspun Corp (WGSR.NS) jumped 4.5% after the steel maker said it received orders worth 6 billion rupees.

Shares of two- and three-wheeler maker Bajaj Auto (BAJA.NS) shed some early gains, standing 1.3% higher as analysts said its announcement of an open market share buyback of 25 billion rupees ($319.23 million) disappointed investors.

Aurobindo Pharma (ARBN.NS) fell 1% after the drugmaker said it received a warning letter from India’s market regulator for failing to comply with disclosure rules over a Food and Drug Administration audit of United States on his unit.

Food delivery company Zomato (ZOMT.NS) fell 6.6%, after rising 3.1% at the start of trading, following a deal to buy local food delivery startup Blinkit grocery store for 44.47 billion rupees ($567.94 million).

($1 = 78.3125 Indian rupees)

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Reporting by Chris Thomas in Bengaluru; Editing by Vinay Dwivedi

Our standards: The Thomson Reuters Trust Principles.

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