Indian shares rise as May CPI cools marginally

People watch a large screen displaying India’s benchmark share index on the facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, January 20, 2016. REUTERS/Shailesh Andrade

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BENGALURU, June 14 (Reuters) – Indian shares edged up on Tuesday, as inflation data soothed investors’ nerves, while global markets were spooked by Wall Street hitting a bear market milestone on fears of a looming recession.

The NSE Nifty 50 index (.NSEI) was up 0.2% at 15,810.8 as of 0506 GMT, while the BSE index (.BSESN) rose 0.2% to 52,954.65.

“CPI data was comfortable and that is why there has been some bounceback. Volatility is likely to remain for a month or two,” said Siddharth Sedani, senior vice president at Anand Rathi.

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India’s retail inflation eased to 7.04% in May, after touching an eight-year high of 7.79% in April, but remained above the central bank’s tolerance band for a fifth month in a row, suggesting it would continue with rate hikes in August. read more

Asian shares slid sharply on Tuesday after Wall Street hit a confirmed bear market milestone and Treasury yields struck their highest in more than a decade on fears aggressive interest rate hikes would push the world’s largest economy into recession.

Nifty IT index (.NIFTYIT) was up 0.9%, after having fallen 11.6% so far this month.

Infosys (INFY.NS) was the top boost on the Nifty 50 index, up 1.3%.

The Nifty metal index (.NIFTYMET) was up 0.7%, with Ratnamani Metals and Tubes (RMT.NS) the top gainer at 2.4%.

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Reporting by Tanvi Mehta in Bengaluru; Editing by Shailesh Kuber

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