Home Blues Tech rebound drives Indian stocks higher, blue chip earnings in sight

Tech rebound drives Indian stocks higher, blue chip earnings in sight

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A general view of the Bombay Stock Exchange (BSE), after Sensex broke above the 50,000 level for the first time, in Mumbai, India January 21, 2021. REUTERS/Francis Mascarenhas

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BENGALURU, Jan 31 (Reuters) – Indian stocks rose on Monday after two weeks of heavy losses, as investors snapped up battered tech stocks, with a host of blue-chip earnings and the federal budget top of mind.

The blue-chip NSE Nifty 50 index (.NSEI) climbed 1.41% to 17,342.7 at 0458 GMT, while the S&P BSE Sensex (.BSESN) rose 1.41% to 58,007, 19. The indices had fallen about 3% last week.

The Nifty IT index (.NIFTYIT), which had fallen in eight of the past nine sessions amid a tech sell-off on concerns over rising interest rates in the United States, climbed as high as 3.2% on Monday.

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“We are mostly reflecting the strong close in the US market on Friday, but it will be difficult to sustain those gains given that we have the budget tomorrow. We think it would be prudent to limit positions,” said Ajit Mishra, vice president. research at Religare Broking. .

Foreign investors sold off ahead of Tuesday’s budget, where analysts expect additional fiscal measures to boost demand amid a third wave of COVID-19 infections.

“For now, there is every indication that we could see more consolidation after the budget, as the data on foreign investors is not too encouraging,” Mishra said.

The Nifty was expected to end January slightly lower while the Sensex was heading for a 0.5% decline, as losses seen over the past two weeks eclipsed strong gains seen at the start of the month.

Jefferies said Indian stock valuations were still not in “the comfort zone” despite the recent correction driven by concerns over Federal Reserve tightening.

In early trading on Monday, India’s most valuable company, Reliance Industries (RELI.NS), which had lost 5.7% since the earnings release earlier this month, was up 2.6%.

Meanwhile, private sector lender IndusInd Bank (INBK.NS) fell 3.2% after reporting quarterly results.

AGS Transact Technologies (AGST.NS) fell 5.1% on its market debut.

Slick constituents Tata Motors (TAMO.NS), Indian Oil (IOC.NS), BPCL (BPCL.NS), Sun Pharma (SUN.NS) and UPL (UPLL.NS) will release their results later today.

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Reporting by Chris Thomas in Bengaluru; Editing by Shailesh Kuber and Subhranshu Sahu

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