Eicher Motors leads rise in Indian shares
Updates at 10:32 a.m. IST
By Bharath Rajeswaran
Nov 14 (Reuters) -Indian shares rose on Thursday, after sinking into correction territory in the previous session, with Eicher Motors driving the gains in the blue-chip indexes following a better-than expected quarterly profit.
The NSE Nifty 50 .NSEI rose 0.18% to 23,602.25 as of 10:32 a.m. IST, while the BSE Sensex .BSESN gained 0.15% to 77,808.18.
Eleven of the 13 major sectors advanced. The broader small- .NIFSMCP100 and mid-caps .NIFMDCP100 gained about 1.5% and 1.1%, respectively.
Eicher EICH.NS, which makes Royal Enfield motorcycles, jumped 7.5%, the most on the Nifty, after its September-quarter profit beat market expectations, helped by increased sales of its higher-capacity models such as the "Himalayan".
Still, analysts remained cautious after the Nifty and the small- and mid-cap indexes slipped into correction in the previous session, with the Sensex just about avoiding to do so.
"The current market texture remains weak but oversold. Hence, there could be one day of quick pullback rally from the current levels," said Shrikant Chouhan, head of equity research at Kotak Securities.
The market weakness, which pulled the Nifty down 10% from its record high on Sept. 27 and confirmed the correction, has been due to a disappointing corporate earnings season and the massive foreign outflows worth $15 billion in the last 33 sessions.
Adding to that, data earlier this week showed inflation jumped, fanning fears of a consumption slowdown and dampening hopes of a domestic rate cut in the near-term.
Among individual stocks, Jio Financial Services JIOF.NS and Zomato ZOMT.NS rose 5.7% and 3.7%, respectively, after getting the markets regulator's approval for derivatives trading.
Brokerage Nuvama also identified the two companies as likely candidates for inclusion into Nifty 50 index in its next rejig in March 2025.
HDFC Bank HDBK.NS, bearing the most weightage on the Nifty 50, gained 1.1% and led financials .NIFTYFIN about 0.9% higher.
Financials gained as investors, amid the correction, sought safety in the only sector with relatively cheaper valuations compared to historical averages, analysts said.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Savio D'Souza
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
