Indian shares rose to their highest level in 12 weeks on Thursday after a jump in non-bank lender Bajaj Finance blew its earnings estimates, while a rate hike on the lines expected by the US Federal Reserve calmed investors’ nerves. done.
The NSE Nifty 50 index (.NSEI) was up 1.2% at 16,841.35 as of 0501 GMT, while the S&P BSE Sensex (.BSESN) was up 1.33% at 55,560.9, both touching their highest levels since May 5. Blue-chip earnings report.
Comments from Chairman Jerome Powell that raised interest rates by 75 basis points and dismissed the possibility of a recession gave investors some respite ahead of the policy meeting this week.
“We’ve taken on strong global cues after the Fed moved on expected lines. The Fed’s commentary that it would only move on large hikes in the future if data warrants it has further improved sentiment” said Gaurav Dua, head of capital market strategy at Sharekhan.
Bajaj Finance’s holding company, Bajaj Finserv (BJFS.NS), which is also expected to report results, decide on a bonus share issue and a stock split on Thursday, jumped 8.2%.
The Nifty Financial Services index (.NIFTYFIN) advanced 1.9% to a 15-week high.
Meanwhile, auto heavyweight Tata Motors (TAMO.NS) slid 3.8% in its sharpest intraday drop over six weeks after reporting a more significant loss on a cost jump. SpiceJet (SPJT.NS) dived 9.3% to a March 2020 low after India’s aviation regulator halved the budget carrier’s capacity, citing recent safety snags on Wednesday.
Nifty 50 components Dr Reddy’s Laboratories (REDY.NS), Nestle India (NEST.NS) and SBI Life Insurance (SBIL.NS) are scheduled to report results later in the day.