Financials power Indian shares; Nifty 50 in overbought zone

Monday,   29-May-2023   03:48 PM (IST)

Indian shares advanced on Monday, led by an uptick in financials while improved global cues due to a weekend debt ceiling deal in the U.S. added heft. The blue-chip Nifty 50 index closed 0.54% higher at 18,598.65, while the benchmark S&P BSE Sensex rose 0.55% to 62,846.38. Both benchmarks closed at five-month highs for the second session in a row. Technical indicators showed the Nifty 50 moved to the overbought zone on Monday, implying a potential slide in the near term. The benchmark is nearly 300 points away from its record-high levels. Eleven of the 13 sectoral indexes logged gains, with the high-weightage financials rising 0.84%. ICICI Lombard General Insurance Ltd surged over 8% after ICICI Bank's board approved raising its stake in the company by 4%. Auto index rose 0.63% powered by a nearly 4% gain in Mahindra & Mahindra Ltd. The stock, second heaviest in the auto index, was the top gainer on the Nifty 50 after reporting a rise in March-quarter profit. Among individual stocks, drugmaker Lupin Ltd gained over 3% to hit a 15-month high after its Canada subsidiary received approval to market a generic version of its pulmonary disease drug. Shares of Oil & Natural Gas Corporation Ltd fell nearly 3% after reporting a loss in the fourth quarter. Sentiment improved after U.S. President Joe Biden and House Speaker Kevin McCarthy forged an agreement over the weekend to suspend the $31.4 trillion debt ceiling until 2025, ahead of the June 1 deadline. The deal will have to pass through the U.S. Congress.