The BSE Sensex rose 0.33% to 57,817.72. (file)
Bengaluru:
Indian shares opened higher on Tuesday tracking a rebound in global equities on temporary relief from the rescue of financial heavyweight Credit Suisse, although fears of a banking contagion loomed large.
The Nifty 50 index was up 0.31% at 17,041.55, while the S&P BSE Sensex was up 0.33% at 57,817.72 at 9:43 AM IST.
Of the 13 major sectoral indices, 10 are higher with high-weighted financials rising 0.5%. Thirty-seven of the Nifty 50 constituents registered gains.
The rise in domestic equities follows a rally in global markets as concerns over the global banking crisis temporarily eased following the rescue of Credit Suisse.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.46%. [MKTS/GLOB]
Analysts said the quick execution of the Credit Suisse acquisition is a temporary relief, but concerns about contagion in global banking remain.
Reliance Industries, the largest stock in Nifty 50 in terms of market capitalization and weightage, advanced over 1.5% after global brokerage firm CLSA rated it “bargain buy” at current valuation. The stock had touched 52-week lows in the last few sessions.
Shares of Bajaj Finance rose 2%, while industrial conglomerate Larsen & Toubro gained 1%.
Information technology (IT) stocks declined after brokerages cautioned that the banking crisis in developed markets could curb discretionary tech spending in the near term. All the 10 components of the IT index registered losses.
($1 = 82.5200 Indian Rupees)
(Reporting by Bharat Rajeshwaran in Bengaluru; Editing by Dhanya N Thoppil)
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