Home Energy company Indian stocks gain around 1% as energy and metals stocks rally

Indian stocks gain around 1% as energy and metals stocks rally

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A general view of the Bombay Stock Exchange (BSE), after Sensex broke above the 50,000 level for the first time, in Mumbai, India January 21, 2021. REUTERS/Francis Mascarenhas

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BENGALURU, July 5 (Reuters) – Indian stocks rose on Tuesday, led by energy companies and battered metal stocks, as falling commodity prices eased worries about runaway inflation.

At 05:14 GMT, the NSE Nifty 50 Index (.NSEI) climbed 1% to 15,999, while the S&P BSE Sensex (.BSESN) rose 0.96% to 53,747.87.

The Nifty Metals index (.NIFTYMET) gained 1.8% after falling almost 2.5% in the previous session, while the energy index (.NIFTYENR) rose 1.3 %.

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“Commodity prices have come down from the peak. This has reduced inflation fears. Although fears of rate hikes and recession have not completely evaporated, the doomsday scenario has eased a lot,” Anand said. James, chief market strategist at Geojit Financial Services.

Prices for several commodities, including steel, iron, wheat, palm oil and crude, have fallen from multi-month highs over the past two weeks.

The Nifty Volatility Index (.NIFVIX), which indicates traders’ expectations for market volatility over the next 30 days, fell 2% to 20.535.

The volatility index has been supportive and as we head into earnings season, it’s giving the markets some kind of positivity to look past rate hikes and recession-related worries, James said.

Among individual winners, PTC India Financial Services (PTCN.NS) jumped nearly 20% after the non-banking financial firm said an independent audit had issued a “satisfactory report” after finding the company maintained a sufficient transparency.

PTC India Financial has been under the Indian market regulator’s radar for its corporate governance issues. Read more

Marksans Pharma (MARK.NS) jumped 17.8% after a proposed share buyback.

Meanwhile, Asian stocks edged higher as positive economic data and signs of easing Sino-US tensions offered some respite from recent selling, although lingering fears of a recession and inflation dizzying heights have kept most buyers at bay.​

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Reporting by Nallur Sethuraman in Bangalore; Editing by Amy Caren Daniel and Uttaresh.V

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