Indian shares snap 3-day losing run to join global rebound

BENGALURU, Aug 7 (Reuters): India's benchmark indexes rose about 1 per cent on Wednesday, snapping a three-session losing streak and a day late in joining the global rebound as fears of a US recession abated.

The NSE Nifty 50 index gained 1.27 per cent to close at 24,297.5, and the S&P BSE Sensex added 1.11 per cent to end at 79,468.01. They slid about 4 per cent in the past three sessions amid a global rout as yen carry trades unwound and a weak US jobs report sparked fears of a recession.

But while global markets rebounded on Tuesday after comments from key Federal Reserve officials eased some of the recession worries, the Indian markets' recovery was stymied by profit booking near record-high levels. However, the markets joined on the second day of the global recovery.

"The rise in Indian markets shows that the knee-jerk reaction to US recession fears and unwinding of the yen carry trade is subsiding," said Raghvendra Nath, managing director of LadderUp Wealth Management.

"But the weakness over the last three sessions indicates that markets are going to be very aggressive in pricing unforeseen risks, which could lead to high volatility and episodes of profit booking."

All the 13 major sectors gained.

The oil and gas and public sector companies gained about 3 per cent and 4 per cent, respectively, led by a 7.5 per cent jump in Oil & Natural Gas Corp.

The state-run energy company reported a quarterly profit beat earlier this week and analysts said its sustained earnings momentum was a key positive catalyst.