BENGALURU (Reuters) -Autos and financials helped Indian shares open higher on Tuesday, after initial numbers raised hopes of a strong quarterly results season, though worries about weak spending by IT company clients capped gains.
The Nifty 50 rose 0.10% to 17,723.50, as of 9:44 a.m. IST, while the S&P BSE Sensex gained 0.09% to 59,958.50. Ten of the 13 major sectoral indexes advanced.
The Nifty had snapped a nine-day winning streak in the previous session.
Tata Motors jumped over 2% and was the top gainer in the Nifty 50 index after global brokerage firm CLSA picked the company and Maruti Suzuki as its favourite four-wheeler stocks. Maruti Suzuki rose nearly 1%.
Nifty Auto rose 0.5% while high weightage financials index gained 0.3%
Information technology stocks, which led the correction on Monday, were up 0.3%.
Weak earnings from Tata Consultancy Services and Infosys, along with commentary about concerns over tech spending in the U.S. and Europe dragged IT stocks to a six-month low on Monday.
Analysts expect benchmark Nifty 50 index to witness consolidation in the near term.
“Managing risk holds the key,” said Ajit Mishra, vice president of technical research at Religare Broking, citing an uptick in volatility during the earnings season.
Asian markets trimmed early losses after China’s economy recorded a stronger-than-expected growth in the March quarter. [MKTS/GLOB]
Among individual stocks, Angel One rose over 5% after posting 30% jump in consolidated net profit in March quarter, as orders surged.
Jubilant FoodWorks jumped on stake dilution in Hashtag Loyalty after Coca-Cola bought 15% stake in Hashtag Loyalty for 1.05 billion rupees.
($1 = 81.9610 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann Thoppil and Nivedita Bhattacharjee)
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Source: The Print
