The India stock market closed higher Thursday, with traders favouring real estate, consumer goods and automotive stocks.
The National Stock Exchange’s NIFTY 50 Index closed 0.82% higher at 17,790.35. Likewise, the S&P BSE SENSEX ended 0.82% higher at 59,677.83.
The NIFTY Realty Index, comprised of 10 stocks including the country’s largest home builder DLF, zoomed 6.16%. The NIFTY Consumer Durables Index, comprised of 15 stocks including kitchen appliances giant TTK Prestige, surged 5.28%. The NIFTY Auto Index, comprised of 10 stocks including tyre manufacturer MRF, shot up 4.39%.
Gainers and losers
The Indian rupee was trading flat to the US dollar at 17:59 hours Indian time (UTC+5:30).
On the NIFTY, shares of Tata Motors and jewellery retailer Titan Industries were among the top gainers and added 12.63% and 10.54%, respectively. Rival vehicle producer Mahindra and Mahindra (M&M) rose 4.93%.
Energy giant Oil & Natural Gas, drug maker Dr Reddy’s Laboratories (DRL) and mining giant Coal India were the top losers, shedding 4.46%, 1.3% and 0.965%, respectively.
On the SENSEX, shares of Titan, M&M and the nation’s leading carmaker Maruti Suzuki India were the biggest gainers, adding 10.69%, 5.32% and 4.04%, respectively.
DRL, insurance provider Bajaj Finserv and the country’s leading mortgage lender Housing Development Finance were among the biggest losers, shedding 1.31%, 0.87% and 0.71%, respectively.
Central bank policy
For months, India’s central bank has been pumping cash into the economy to help it recover from the pandemic. But now, all that extra liquidity is threatening to fan inflation at a time when a surge in global energy costs is already adding upward pressure on prices.
The Reserve Bank of India will most likely maintain the benchmark interest rate at a record low of 4%, economists told Capital.com earlier today.