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Nifty, Sensex rise as retail inflation eases; financials lead gains

Reuters 

By Krishna V Kurup

- Indian shares edged higher on Tuesday, with financials accounting for over half the gains, as easing allayed concerns of a rate hike in the near term.

India's eased to 4.44 percent in February from 5.1 percent in January, but remained above the 4 percent medium-term target of the

Analysts, however, said could accelerate to 6 percent by June and may remain at 5 percent to 6 percent in the financial year that begins on April 1, leading to pre-emptive monetary tightening.

The broader NSE Nifty was up 0.36 percent at 10,458.85 as of 0541 GMT, while the benchmark BSE Sensex rose 0.34 percent to 34,034.01.

Financial stocks led the gains on the gains, with the Nifty PSU rising as much as 3.8 percent. rose 4.2 percent and gained 5.9 percent.

"PSU (public sector) banks have been oversold, having been battered down so badly, so some sort of bounce was due and the CPI (data) coming in at a soft level became a trigger for the rise as it could lead to some pressure on RBI to re-look the interest rates," said Deepak Jasani, at

Meanwhile, IT stocks declined led by Tata Consultancy Services, which posted its biggest intraday pct fall since Nov. 2016 after a term sheet showed that parent is set to sell a stake in the company.

(Reporting by Krishna V in Bengaluru; Editing by Sunil Nair)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 11:51 IST
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