Indian shares end losing streak on boost from metal, energy stocks

A man looks at a screen displaying news of markets update inside the Bombay Stock Exchange (BSE) building in Mumbai, India, February 11, 2016. REUTERS/Danish Siddiqui/File Photo

BENGALURU, Nov 23 (Reuters) – Indian shares snapped four sessions of losses on Tuesday, as metals and energy stocks marked a sharp recovery.

The blue-chip NSE Nifty 50 index (.NSEI)ended up 0.5% at 17,503.35 and the benchmark S&P BSE Sensex (.BSESN)rose 0.34% to 58,664.33, after falling as much as 1.15% and 1.28% earlier in the session. The indexes lost nearly 4% each over the last four sessions.

The Nifty Metal index (.NIFTYMET) ended the session 3.3% higher, helped by Vedanta Ltd (VDAN.NS), which rose nearly 8% on a report that its promoters were looking to buy up to 170 million shares of the mining company.

Metal shares were also supported by a 10% surge in China’s benchmark iron ore futures, as steelmakers were set to resume production after rigorous controls over the past few months. read more

Steel Authority of India Ltd (SAIL.NS) and JSW Steel (JSTL.NS) were among the top performers on the sub-index, rising 3.45% and 4% respectively.

The Nifty Energy index (.NIFTYENR) ended 2.03% higher. The United States is expected to announce a loan of crude oil from its emergency stockpile on Tuesday as part of a plan with major Asian energy consumers, including India, to lower energy prices. read more

Easing of oil prices globally is a tailwind but what is concerning is that foreign institutional investors are remaining as large sellers, according to independent market analyst Ajay Bodke.

“This is something markets cannot ignore, especially since India has been outperforming other emerging markets in recent months. We are not out of the woods,” he said.

Bodke added that the market’s course reversal on Tuesday was “just a technical bounce-back”.

Among stocks, digital payments start-up Paytm (PAYT.NS) ended up 9.94% after two sessions of sharp falls, while shares of SpiceJet (SPJT.NS) hit an over two-month high after the low-cost airline said compensation from Boeing (BA.N) for grounded MAX planes will be in cash and aircraft.

Asia stocks faltered, as traders bolstered bets on U.S. rate hikes in 2022 after President Joe Biden reappointed Federal Reserve Chair Jerome Powell.

Reporting by Vishwadha Chander in Bengaluru; editing by Subhranshu Sahu and Maju Samuel

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