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India shares close at over 2-week high

June 28, 2022 00:00:00

BENGALURU, June 27 (Reuters): Indian shares joined a rally in global stock markets to close at a more than two-week high on Monday, led by technology and metal stocks, as easing oil prices tempered inflation fears.

The NSE Nifty 50 index (.NSEI) rose 0.85pc to 15,832.05, and the S&P BSE Sensex (.BSESN) climbed 0.82pc to 53,161.28, with both the indexes gaining for a third straight session.

"While the change in mood has come as a major relief, the optimism may remain for a few more sessions before the market turns volatile amid concerns over slowing global economy due to rate hikes and continuing foreign fund outflows," said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.

Worries around inflation and policy have driven the benchmark indexes down around 4.5pc each for the month so far, putting them on track for their worst month since the pandemic-hit March in 2020.

On Monday, the Nifty IT (.NIFTYIT) was the best performing sub-index in Mumbai, jumping 2.3pc to its highest since June 10, boosted by a 2.8pc rise in heavyweight Infosys (INFY.NS).

The Nifty Metal index (.NIFTYMET), which has fallen sharply this month, rose 1.5pc.

Welspun Corp (WGSR.NS) jumped 4.5pc after the steel products maker said it received orders worth 6 billion rupees.

Shares of two- and three-wheeler maker Bajaj Auto (BAJA.NS) gave up some of the early gains, settling 1.3pc higher, as analysts said its 25 billion rupee ($319.23 million) open market share buyback announcement disappointed investors.

Aurobindo Pharma (ARBN.NS) slipped 1% after the drugmaker said it received a warning letter from the Indian market regulator for not complying with disclosure regulations regarding an U.S. Food and Drug Administration's audit on its unit.

Food delivery firm Zomato (ZOMT.NS) slid 6.6pc, after rising 3.1pc in early trade, following a deal to buy local grocery-delivery startup Blinkit for 44.47 billion rupees ($567.94 million).

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