Indian shares log gains on less-hawkish Fed, easing oil prices
Thursday,
02-May-2024
04:33 PM (IST)
Indian shares advanced as a less hawkish stance by the U.S. Federal Reserve on rate hikes eased market concerns, while a drop in overnight crude prices helped cool domestic inflation fears. Blue-chip indexes Nifty settled 0.19% higher at 22,648.2 points, while the Sensex appreciated 0.17% to 74,611.11. The broader, more domestically focussed small-caps rose 0.04%, while the mid-caps gained 0.5%, outperforming the benchmarks. Market sentiments were also powered by gains in the Nifty energy index which was up 1.1% driven by an overnight drop in global oil prices amid rising hopes of a ceasefire agreement in the Middle East. Bharat Petroleum, Hindustan Petroleum and Indian Oil Corp gained between 3.9% and 7.7%. The drop in oil prices to a seven-week low also boosted positive sentiment for inflation expectations in India, the world's third-largest importer and consumer, benefiting paint makers Asian Paints and Grasim Industries, which gained 3.5% and 1.1%, respectively. Auto stocks also rose 1.1%, helped by higher April sales, while metal stocks added 1.13% on an easing dollar. Meanwhile, gains on the Nifty were capped by a decline in high-weightage bank stocks, which dropped 0.3%, dragged by private lender Kotak Mahindra Bank, which lost 3% after the private lender's joint managing director resigned following two months in the role.
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