As IT and metal stocks rise, Indian shares close at a 2-week high

As IT and metal stocks rise, Indian shares close at a 2-week high on Monday

As falling oil prices allayed inflation fears, Indian shares joined a rally on the international stock markets to close at a more than two-week high on Monday. 

The S&P BSE Sensex (.BSESN) and NSE Nifty 50 index (.NSEI) both increased for a third straight session, rising 0.82 percent and 0.85 percent, to 53,161.28 and 15,832.05, respectively. The market may continue to be upbeat for a few more sessions before turning unstable, raising concern about the slowing global economy caused by rate hikes and ongoing outflows of foreign funds outflows, according to Shrikant Chouhan, head of equity research (retail) at Kotak Securities. 

The benchmark indices have fallen almost 4.5 percent on average this month due to concerns about inflation and policy, putting them on course to suffer their lowest month since the pandemic-wracked March of 2020.

The Nifty IT (.NIFTYIT) sub-index in Mumbai had the most robust performance on Monday, gaining 2.3 percent to its highest since June 10, owing to a 2.8 percent increase in the heavyweight Infosys (INFY.NS).

The Nifty Metal index, which has dropped significantly this month, increased by 1.5 percent.

After the steel product manufacturer Welspun Corp (WGSR.NS) reported receiving orders worth 6 billion rupees, the stock rose by 4.5 percent.

Shares of two- and three-wheeler manufacturer Bajaj Auto (BAJA.NS) renounced some of their early gains, closing 1.3 percent higher, according to analysts who felt that the company’s announcement of an open market share buyback for 25 billion rupees ($319.23 million) disappointed investors.

Aurobindo Pharma (ARBN.NS) fell 1% after the pharmaceutical company disclosed that the Indian market regulator had issued it a warning letter for failing to disclose information about an audit of its subsidiary by the US Food and Drug Administration.

Following a deal to buy local grocery-delivery startup Blinkit for 44.47 billion rupees ($567.94 million), food delivery company Zomato (ZOMT.NS) fell 6.6 percent after climbing 3.1 percent in early trade.

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