Indian shares extend rally on improved risk sentiment
By Bharath Rajeswaran
BENGALURU (Reuters) -Indian shares extended gains for a second session in a row on Monday, after strong economic data from the United States and investment in the Adani group of companies boosted risk appetite.
The Nifty 50 index closed 0.67% higher to 17,711.45, while the S&P BSE Sensex gained 0.69% to 60,224.46.
Eleven of the 13 major sectoral indexes rose, with high weightage financials and information technology adding 0.58% and 1.22%, respectively.
Oil and gas stocks added nearly 2% after the government marginally raised windfall tax on crude oil and slashed tax on diesel in its fortnightly revision over the weekend.
Most of the Adani group stocks advanced, extending gains after U.S. boutique investment firm GQG Partners' $1.87 billion investment in the conglomerate on Thursday.
The group's flagship firm Adani Enterprises was the top Nifty 50 gainer, rising 5.45%.
"When you have a credible long-term investor putting in a significant chunk of money into Adani group stocks, it's a confidence booster," said Atul Suri, CEO of Marathon Trends - PMS.
Analysts added that Adani group stocks have a "collateral" effect on markets, especially financials, which were hammered earlier due to fear of exposure to the conglomerate.
Financial services stocks had a 37.40% weightage on the Nifty 50 as of Feb. 28.
The rise in domestic equities is also aided by positive U.S. economic data. Investors now await Federal Reserve Chair Jerome Powell's testimony to the U.S. Congress on Tuesday and Wednesday for cues on the monetary policy trajectory. [MKTS/GLOB]
Among individual stocks, Mahanagar Gas jumped nearly 8.72% after an acquisition worth 5.31 billion rupees ($65 million) while Power Grid rose over 2.3% to a six-week high after two successful project bids.
Indian markets will be closed on Tuesday, March 7, for a public holiday, and will resume trading on Wednesday, March 8.
($1 = 81.7775 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng and Janane Venkatraman)