Indian shares gain as IT, financials rebound outweighs Reliance's slide

BENGALURU, Aug 21 (Reuters): Indian shares rose on Monday, as a rebound in IT and financial stocks outweighed the slide in Reliance Industries following spin-off Jio Financial's weak trading debut.
The Nifty 50 index settled 0.43 per cent higher at 19,393.60, while the S&P BSE Sensex added 0.41 per cent to 65,216.09.
IT stocks gained 1.09 per cent, rebounding from a 1.47 per cent tumble on Friday on worries about higher US interest rates.
"A lot of good mid-cap IT firms, which were at lofty valuations, have corrected massively in the last 10-12 months making them attractive buy opportunities at the current levels," said Aishvarya Dadheech, chief investment officer at Fident Asset Management.
Financials rose 0.46 per cent after a seven-day losing run in which they shed about 3 per cent. Bajaj Finance gained 2.75 per cent, snapping a five-session losing streak.
On the flip side, Jio Financial tumbled 5 per cent in its market debut and closed at the lower circuit. That led parent Reliance 1.44 per cent lower, with both stocks among the top Nifty losers.
Adani group stocks climbed between 0.1 per cent and 7 per cent. Adani Ports and Special Economic Zone was up 2.66 per cent, adding to its gains from Friday after GQG Partners raised its stake in the company.
Adani Enterprises advanced 2.42 per cent and powered a 1.30 per cent rise in metal stocks despite concerns over the economic revival in China, the world's largest metals producer and consumer.
China's smaller-than-expected rate cut spurred deflation concerns and weighed on the broader Asian markets.
"Weakness in dollar index and one more rate hike expectation from Federal Reserve will keep Indian markets range bound, given the weakness in China," added Dadheech.
The more domestically focussed smallcaps and midcaps outperformed the blue-chips, adding 0.63 per cent and 0.82 per cent, respectively.
"Broader markets are supported by earnings visibility and brisk trading activity on strong near-term returns," said Deven Choksey, managing director at KRChoksey Holdings, adding that "investors are willing to pay a premium for growth".