BENGALURU, Aug 16 (Reuters) - Indian shares traded higher on
Tuesday, with the NSE Nifty 50 index trading above 17,800 for
the first time since April 8, helped by softening consumer
inflation that eased for a third straight month in July.
The NSE Nifty 50 index was up 0.7% at 17,827.25, as
of 0500 GMT, while the S&P BSE Sensex was 0.7% higher
at 59,888.24. Indian markets were closed on Monday for a
"Inflation data has helped the mood and foreign investors
are back in the market," said Saurabh Jain, assistant
vice-president, research, at SMC Global Securities, adding that
cooling local commodity prices boosted outlook for second-half
of the fiscal year 2022/23.
India's consumer inflation dipped to 6.71% in July, aided by
a slower increase in food and fuel prices and adding to
expectations that the central bank may rein in the pace of its
policy rate hikes from next month.
Auto stocks were up, and the Nifty Auto index
hit a record high with its 1.8% gain.
Shares of Hero MotoCorp rose as much as 3% after
strong June-quarter results.
Life Insurance Corporation of India rose 2.5%
after the country's biggest insurer posted a 20% jump in
June-quarter premium income on Friday.
Meanwhile, Asian stocks struggled for direction, weighed
down by worries over global growth following weak China data
that knocked oil prices and commodity-linked currencies.
India's currency and debt markets remained closed on Tuesday
for a holiday.
(Reporting by Tanvi Mehta in Bengaluru; Editing by Subhranshu
Sahu and Neha Arora)