Indian shares shook off early nerves and inched closer to record highs on Wednesday, underpinned possibly by foreign inflows and a rally in information-technology stocks, reports Reuters.
The Nifty 50 climbed 0.55 per cent to 26,052.65, while the BSE Sensex rose 0.61 per cent to 85,186.47, placing both benchmarks less than 1 per cent below the lifetime peaks hit in September 2024.
Thirteen of the 16 major sectors advanced. Mid-caps rose 0.2 per cent, while small-caps fell 0.4 per cent.
India is likely attracting incremental foreign flows as global sentiment softens on concerns around stretched valuations in artificial-intelligence-linked stocks, two analysts said.
"We are seeing a resurgence in equity markets, driven by strong festive consumption, stabilising earnings, and a clear revival in foreign investor appetite," said PL Asset Management.
Information technology stocks jumped 3 per cent, led by a 3.7 per cent rise in Infosys. India's second-largest software exporter said its 180-billion-rupee share buyback will begin on November 20.
Sentiment globally was subdued, with US stocks dropping overnight on valuation worries, while Asian markets were muted after a sharp correction in the previous session.
Meanwhile, investor focus will be on the minutes from the US Federal Reserve's latest policy meeting, due later in the day, and the September non-farm payrolls report on Thursday, which was delayed due to the government shutdown.
The two will be crucial for investors to assess whether the Fed will cut rates in December.
The odds of a 25-basis-point rate cut next month have dropped over the last week. Higher US rates make investments in emerging markets such as India less attractive for overseas investors.
Seafood exporters gained as much as 10 per cent after media reports of Chinese government notifying Japan that it would suspend imports from the country.
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