A woman looks at the screen outside the Bombay Stock Exchange (BSE) building during Diwali, the Hindu festival of lights, in Mumbai, India, November 1, 2024. REUTERS
Nov 11 (Reuters) – Indian shares recovered from a weak start on Monday, led by gains in heavyweight financials and information technology stocks, with analysts anticipating a return of foreign inflows after China’s stimulus disappointed.
The NSE Nifty 50 (.NSEI), rose 0.32% to 24,229.1 points as of 12:20 p.m. IST, while the BSE Sensex (.BSESN), gained 0.36% to 79,780.77. The indexes slipped 0.5% earlier in the session.
“With China’s disappointing stimulus measures and the drop in Indian shares over the last six weeks which has removed some of the froth, it’s imperative that money has to come back to domestic equities,” said Deven Choksey, managing director of DRChoksey FinServ.
Lackluster earnings and outflows have pushed the Nifty 50 down 7.5% from the record high it hit on Sept. 27.
Indian equities have seen $13 billion of foreign outflows in the last 30 sessions.
On the day, 10 of the 13 major sectors advanced but the more domestically focused small- (.NIFSMCP100), and mid-caps (.NIFMDCP100), shed 0.6% and 0.4%, respectively.
IT companies (.NIFTYIT), which earn a significant share of their revenue from the U.S., rose 1.5% and were the top sectoral gainers.
The IT index has gained 5.5% in four sessions, helped by Republican Donald Trump’s victory in U.S. presidential election, due to potential corporate tax cuts.
Deven Choksey expects the Trump administration to focus on ‘China plus 1’, which will make India attractive and lead to a short-term bounce back in domestic markets.
Two analysts say the Federal Reserve’s positive outlook on the U.S. economy is also triggering buying in the IT sector.
High-weightage financials (.NIFTYFIN), which gained 1.1%, led by an 8.3% rise in Power Finance Corporation (PWFC.NS), which posted a rise in quarterly profit.
Tata Motors (TAMO.NS), gained 2.6% after the automaker retained its fiscal 2025 revenue outlook despite slowing demand conditions.
Asian Paints (ASPN.NS), fell 8% after reporting a profit drop.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy, Janane Venkatraman and Mrigank Dhaniwala
