IT, energy stocks boost Indian shares as global risk mood lightens

IT and energy firms drove Indian shares higher, tracking upbeat global risk sentiment in the absence of major domestic triggers

By Sethuraman N R

BENGALURU (Reuters) -Information technology and energy firms drove Indian shares higher on Tuesday, tracking upbeat global risk sentiment in the absence of major domestic triggers as investors shrugged off worries over the Omicron COVID-19 variant.

The NSE Nifty 50 index was up 0.61% at 17,190 by 0515 GMT and the benchmark S&P BSE Sensex rose 0.59% to 57,757.26.

"Markets have been trying to consolidate after being extremely volatile over the past two weeks. We are trying to find a floor for the market around the 15,900-16,350 range. Even though equity markets have corrected, the valuation is still on the higher side," said Vinod Nair, head of research at Geojit Financial Services.

The Nifty energy index rose 0.7%, while IT stocks added 0.9%, set for a fifth straight month of gains after advancing 1.5% so far in December.

"IT will continue to be at premium valuation. It is the most stable segment and the story they have about digitalisation is going to improve over the coming years. They are defensive in nature and a very safe sector in terms of volatility," Nair said.

India's benchmark indexes are still off by more than 7% from a peak touched in October, pressured by a combination of factors including fears over heated valuation and a surge in Omicron cases globally.

Authorities in Britain and France, however, have held off from imposing tough restrictions on movement, betting that high vaccination rates will stop hospitals from being overwhelmed even as cases surge.

Asian shares gained on Tuesday, cruising in the slipstream of another record-setting day on Wall Street amid strong retail sales figures. [MKTS/GLOB]

Active pharma ingredient maker Supriya Lifescience was listed at a 53.7% premium in its Mumbai market debut, compared with an initial public offering price of 274 rupees.

(Reporting by Nallur Sethuraman in Bengaluru; Editing by Devika Syamnath)