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Indian shares rise as automakers enjoy best day in over two years

Thursday,   23-Jun-2022   05:44 PM (IST)

Indian shares bucked a broader downturn on Thursday as weak metal and oil prices drove beaten-down automakers to their best day since April 2020. The NSE Nifty 50 index rose 0.93% to 15,556.65, while the S&P BSE Sensex climbed 0.86% to 52,265.72. The indexes have added around 1.7% so far this week, after two consecutive weeks of decline fuelled by concerns over interest rate hikes and growth. Aiding sentiment on Thursday was a further retreat in crude prices LCOc1 as investors assessed recession risks and the impact of higher rates on fuel demand. Cheaper oil tends to benefit oil-importing countries like India. Analysts also said central bank commentary that inflation was expected to come down to 4% in 2023-24 was underpinning sentiment. The Nifty Auto index was the best performing subindex, surging 4.4%. Recession worries sent metal prices sharply lower, boosting automakers which have grappled with rising input costs for several quarters. The auto index had fallen around 6% this month, up to last close. India's largest carmaker Maruti Suzuki gained the most on the Nifty 50, rising 6.3% to its highest since late February. Truckmaker Eicher Motors and two-wheeler maker Hero MotoCorp jumped 5.9% each. Bajaj Auto jumped 4.1% after the two- and three-wheeler maker said it would consider a share buyback on Monday, after deferring the proposal last week. Route Mobile also surged 8.5% on share buyback plans. India's largest company Reliance Industries slipped for a second straight day, ending 1.6% lower and capping gains on the Nifty.