IT stocks lead rise in Indian shares
Updates at 9:48 a.m. IST
By Bharath Rajeswaran
Oct 7 (Reuters) - Indian information technology stocks lifted domesticshares on Monday after strong U.S. jobs data allayed fears ofa recession in the world's largest economy.
The Nifty 50 index .NSEI was up 0.24%at 25,047.4 points as of 9:48 a.m. IST, while the S&P BSE Sensex .BSESN gained 0.19% to 81,848.28.
A five-session losing run saw the benchmark indexes slump 4.5% last week in their worst week in over two years as concerns about the deepening conflict in the Middle East continued to rattle investors, while rising foreign outflows also weighed.
However, robust U.S. labour market data, after India market hours on Friday, eased concerns of a likely recession, boosting investor sentiment.
Asian markets opened higher on the day, with the MSCI Asia ex-Japan index .MIAPJ0000PUS rising 0.5%. MKTS/GLOB
Sevenof the 13 major domesticsectors logged gains.
"We see the recent correction as a healthy pull back and still retain the view that it is a buy on dips market," said Abhishek Goenka, founder and CEO of IFA Global.
"The overall India story is intact and continuing domestic flows would continue to cushion markets amid volatility in foreign flows."
IT companies .NIFTYIT, which earn chunk oftheir revenue fromthe U.S., advanced 1% on rising expectations of a soft landing for the United States.
LTIMindtree LTIM.NS and Mphasis MBFL.NS rose 2.5% and 3%, respectively, after JP Morgan upgraded the ITcompanies to "overweight" from "neutral", terming them best placed to benefit from arecovery in the banking and financial services segment.
Among individual stocks, HeidelbergCement India HEID.NS climbed 15% on a report that the Adani group is in talks to acquire the cement manufacturer.
Jio Financial Services JIOF.NS rose 3% after the company and BlackRock receivedthe markets regulator's approval to set up a mutual fund business.
Domestically, the broader, more domestically focused small- .NIFSMCP100 and mid-caps .NIFMDCP100 dropped about 0.5% each.
($1 = 83.9630 Indian rupees)
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Abinaya Vijayaraghavan, Savio D'Souza and Sonia Cheema
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