Indian shares rose on Thursday, tracking gains in Asian markets, as strong U.S. services sector data and an overnight rally in oil prices boosted sentiment, with investor focus expected to shift to June-quarter corporate results starting next week.
U.S. services sector activity hit an 11-month high in September, an encouraging sign for economic growth that may increase the prospect of a Federal Reserve rate hike this year.
October payrolls data out on Friday is expected to give a better idea about the Fed’s likely stance.
The broader NSE Nifty was up 0.25 percent at 8,766.20 by 0642 GMT, while the benchmark BSE Sensex was 0.21 percent higher at 28,279.12.
“Markets have taken cognizance of the fact that there are a lot of events to look up to; taking stock of the situation is what we are seeing now,” said Anand James, chief market strategist at Geojit BNP Paribas Financial Services.
“It looks like the focus will now be on companies’ performance and other macro cues.”An oil price rally overnight also lifted sentiment, with Bharat Petroleum Corp Ltd rising as much as 5.19 percent to a record high, while Reliance Industries Ltd climbed 2.80 percent.
Oil prices rose to their highest since June on Wednesday after a fifth unexpected weekly drawdown in U.S. crude inventories raised hopes that major producers would agree to cut output next month.
The Nifty Energy Index climbed as much as 3 percent to its highest in more than two years, pushing up the broader NSE Nifty.
Among losers, Yes Bank Ltd fell 3.73 percent after the Mint financial daily reported that a probe by India’s capital markets regulator found the company had violated fund-raising rules.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 percent, while Japan’s Nikkei ended 0.5 percent higher.
Courtesy : Reuters