Tuesday July 19, 2022

Indian shares close at over 1-month high on bank, auto boost

Indian shares close at over  1-month high on bank, auto boost

Photo used for illustrative purpose.

Indian shares closed at a more than one-month high on Tuesday as banking and auto companies gained, while the rupee recovered after breaching 80 against the dollar.

The NSE Nifty 50 index advanced 0.38 per cent to 16,340.55 while the S&P BSE Sensex rose 0.45 per cent to 54,767.62, both closing at their highest since June 9.

The Nifty bank index rose 1 per cent, while the auto index gained 1.1 per cent.

“Concerns over inflation data are now out of the way and the (scaled down) expectations of US Federal Reserve rate hike are not negative for markets,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

“Monsoon has been progressing well, foreign investors’ selling has come down... The results season is picking up and comments and outlook from the companies will be a key driver for the markets going forward,” Khemka added.

Consumer giant Hindustan Unilever ended up 0.6 per cent ahead of its quarterly results, with investors looking for cues on the impact of higher inflation and demand outlook.

The rupee steadied after crossing 80.05 per dollar to hit a record low for a seventh successive session, as the central bank intervened by selling dollars, dealers said.

“The depreciating currency is a concern. The bigger concern is rising crude prices, which puts a lot more pressure on the currency due to more dollar outflows,” Khemka said.

Satellite communication systems provider Nelco rose 5 per cent after reporting a surge in June-quarter profit.

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