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FMCG, financials stocks lift Indian shares to new five-month highs

Tuesday,   30-May-2023   04:26 PM (IST)

Indian shares rose on Tuesday, aided by gains in fast moving consumer goods (FMCG) and high-weightage financials, on improved global cues after U.S. lawmakers reached a tentative debt ceiling deal over the weekend. The blue-chip Nifty 50 index closed 0.19% higher at 18,633.85, while the benchmark S&P BSE Sensex gained 0.20% to 62,969.13. Both benchmarks logged fresh five-month highs for the third session in a row. Six of the 13 major sectoral indexes logged gains. High-weightage financials, which powered the rise in the Nifty 50 over the last two sessions, rose 0.38% while FMCG gained 0.59% and was among the top sectoral gainers. The FMCG index has logged gains for seven sessions in a row and supported the recent rise in the benchmark. Tobacco-to-hospitality conglomerate ITC Ltd gained nearly 1% to a new record high on the day of recording its FY2023 dividend. ITC's plans to revive the demerger of its hotels business, which was put on hold due to COVID-19, also aided the rise. ITC has over 38% weightage in the FMCG index. Meanwhile, Jefferies analysts in a note said that India is on the cusp of a capex cycle. Last week, Chris Wood, the brokerage's global head of equity, said that it was only a matter of time before the Sensex climbed to the 100,000 level. Asian equities trimmed gains as caution ahead of China's manufacturing data offset optimism due to the prospect of the U.S. averting a major debt default. European equities edged higher.