Indian shares hit four-month high

BENGALURU, Aug 11 (Reuters): Indian shares closed at four-month highs on Thursday, led by gains in technology and bank stocks, after a softer-than-expected US inflation data eased fears of aggressive rate hikes by the Federal Reserve.
For domestic cues, investors are awaiting the consumer price index (CPI) data due on Friday. India's retail inflation likely eased in July due to a fall in food and fuel prices, but stayed well above the central bank's upper tolerance limit of 6 per cent for a seventh consecutive month, a Reuters poll showed.
The NSE Nifty 50 index, posting gains for four straight sessions, closed 0.71 per cent higher at 17,659, and the S&P BSE Sensex was up 0.88 per cent at 59,332.60.
"The optimism came on the back of a US consumer inflation rate that eased in July after hitting the peak a month before, raising hopes that the Fed will slow down the pace of interest rate hike," said Prashanth Tapse, research analyst at Mehta Equities, adding that bullish sentiment is likely to prevail as overseas investors remain net buyers.
Foreign investors have bought a net $2.24 billion worth of Indian equities so far this month, compared with $518 million worth of net selling in the same period last month, according to Refinitiv data.