Indian shares rebound after five-day slump

Published: July 25, 2019 15:13:33 | Updated: July 27, 2019 14:05:29

Indian shares rose on Thursday after five sessions of losses, buoyed by gains in financial and pharmaceutical stocks.

The broader NSE index was up 0.7 per cent at 11,350.55 as of 0424 GMT, while the benchmark BSE index was 0.75 per cent higher at 38,132.81.

The indexes were set to snap their longest losing streak since mid-May, which was triggered by heavy foreign investor selling on concerns of higher tax surcharges, slowing economic growth and a weak start to the corporate earnings season.

Technical analysis shows the NSE index is likely to test a resistance at 11,488.01. The index’s wave pattern suggests the correction is not yet complete.

Broader Asian shares edged up after a tech-fuelled rally on Wall Street, while the euro stayed near two-month lows as soft economic data fuelled hopes the European Central Bank could cut rates at its meeting on Thursday.

Bharti Infratel rose as much as 5.4 per cent, its sharpest intraday jump since February, and was the top percentage gainer on the NSE index.

The tower operator blew past estimates with a near 40% jump in quarterly profit on Wednesday.

Finance stocks also contributed to gains at the top, with IndusInd Bank Ltd and Indiabulls Housing Finance Ltd rising 2.6 per cent each.

Non-bank lender Shriram Transport Finance Company Ltd saw its best day in over nine months after posting an 11 per cent jump in quarterly profit.

The Nifty Pharma Index climbed as much as 2.2 per cent.

Drugmaker Cipla Ltd advanced 3.9% in its biggest daily rise since May 20, while Dr.Reddy’s Laboratories Ltd rose 1.9 per cent.

Shares of Tata Motors Ltd fell as much as 3.3 per cent to their lowest since Feb. 11 ahead of the automaker’s quarterly results. The stock was the biggest percentage loser on the indexes.

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