BENGALURU, July 4 (Reuters) - Indian shares recovered early
losses to close higher on Monday as consumer stocks gained after
commodity prices tumbled, overshadowing a selloff in metal
companies due to worries over waning demand from top consumer
NSE Nifty 50 index closed up 0.53% at 15,835.35 and
the S&P BSE Sensex rose 0.62% to 53,234.77. Both
indexes had fallen about 0.5% during the session.
Wheat and oil prices tumbled, lifting the Nifty fast moving
consumer goods index up 2.66%.
A reduction in commodity costs, including palm oil and
wheat, should come as a relief for fast-moving goods companies,
said Saurabh Jain, assistant vice president, research at SMC
The Nifty metals index fell as much as 2.7% as
iron ore and steel prices tumbled on the prospects of aggressive
rate hikes stoked fears of global economic slowdown.
The Nifty IT index, meanwhile, dropped 0.6%.
"The broader market narrative remains unchanged with a
slowdown in global manufacturing causing investors to re-examine
views on stagflation versus recession amid lower commodity
prices," said Stephen Innes, managing partner at SPI Asset
Among individual companies, shares of cigarette to food
products maker ITC rose as much as 3.15% to their
highest since May 2019 at 293.30 rupees.
Supermarket chain operator Avenue Supermarts rose
3% after the company reported strong sales for the first quarter
Consumer company Hindustan Unilever was the top
gainer in the Nifty 50 index, rising 4.1%, while JSW Steel
fell the most, dropping 4.72%.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Amy