BENGALURU, May 22 (Reuters) – Indian shares recovered from a subdued start on Monday, led by the gains in information technology and pharmaceutical stocks, as investors saw buying opportunities at key levels ahead of the resumption of debt ceiling talks in the United States.
The blue-chip Nifty 50 (.NSEI) index was up 0.31% at 18,261.80 as of 10:12 a.m. IST, while the benchmark S&P BSE Sensex (.BSESN) rose 0.21% to 61,863.92.
Nine of the 13 major sectoral indexes logged gains, with high-weightage financials marginally rising.
Information technology stocks (.NIFTYIT) rose 1% and was the top sectoral gainer. All 10 constituents of the IT index advanced.
Pharma stocks (.NIPHARM) also advanced 1%, aided by the uptick in Divi’s Laboratories Ltd (DIVI.NS) and Abbott India Ltd (ABOT.NS) after posting a rise in March-quarter profit.
“A market rebound from major support levels signals bullishness,” said Deven Mehata, equity research analyst at Choice Broking. “Positional traders can purchase declines with suitable stop-loss near the support level of 18,050 levels.”
Power Grid Corporation of India Ltd (PGRD.NS) rose over 2% and was among the top gainers in the Nifty 50 index after reporting a rise in March-quarter profit.
Glenmark Pharmaceuticals Ltd (GLEN.NS) lost over 6% as several analysts downgraded the drug maker after its quarterly loss.
Asian equities recovered from a weak start after China’s central bank left its benchmark lending rates unchanged for the ninth month in a row.
Wall Street equities closed lower on Friday on concerns over U.S. debt ceiling talks. A failure to lift the debt ceiling would trigger a default and spike interest rates, analysts cautioned.
“Advise investors to restrict positions and focus on accumulating quality stocks during the consolidation phase, amid mixed global cues,” said Ajit Mishra, vice president for technical research at Religare Broking.
