IT stocks, cenbank GDP boost drive Indian shares higher
Updates at 11:02 a.m. IST
BENGALURU, June 7 (Reuters) -Indian shares traded higher on Friday, aided by gains in IT stocks, and as the country's central bank raised itsgrowth expectations for the current fiscal year while keeping interest rates unchanged as expected.
The NSE Nifty 50 index .NSEI was up 1% at 23,060 points and the S&P BSE Sensex .BSESN added 1.2% to 75,941 points after the rate decision.
The Reserve Bank of India (RBI) kept its key interest rate unchanged in a widely expected move as robust economic growth continues to provide space to focus on bringing down inflation, andraised the real gross domestic product for the current financialyear to 7.2% from 7%.
The revision reaffirms that the central bank remains upbeat on growth, said Sakshi Gupta, principal economist, HDFC Bank, Gurugram.
On the day, all thirteen sectors were trading in the green.
Heavyweight IT stocks .NIFTYIT gained 3% after major central banks kick-started their rate easing cycle, adding to expectations that the U.S. Federal Reserve could follow suit.
Wipro WIPR.NS, India's no.4 IT company, advanced 5% and was the top gainer on the ITindex after winning an order worth $500 mln from a U.S.-based communication services provider.
Bajaj Finance BJFN.NS rose 3% after its housing finance unit approved an initial public offering to raise 40 billion rupees.
Investors nowawait the U.S. non-farm payrolls report, due later in the day, which could influence the trajectory of interest rates in the U.S., a key market for IT firms.
Reporting by Sethuraman NR and Hritam Mukherjee in Bengaluru; Editing by Sonia Cheema
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.
