BENGALURU, Aug 17 (Reuters) - Indian shares gained on
Wednesday, with the S&P BSE Sensex hitting its highest
level since April 5, as easing pace of inflation and strong
earnings drove gains.
The NSE Nifty 50 index rose 0.5% to 17,915.45 as of
0515 GMT while the Sensex was trading 0.5% higher at
A softening inflation print has given rise to expectation
the Reserve Bank of India might slow down pace and quantum of
rate hikes in the coming months.
"There is comfort that aggressive rate hike cycle might just
get over with one or two more cycles," said Siddharth Khemka,
head of retail research at Motilal Oswal Financial Services.
"The stance (by global central banks) may become softer
gradually, and market is hoping for a softer landing, which is
boosting sentiment across the world."
Strong corporate June-quarter results, softening commodity
prices and easing of consumer inflation has helped domestic
mood, particularly in consumer and auto stocks, Khemka added.
The Nifty FMCG index rose to a record high,
with Hindustan Unilever up 1.8%.
The Nifty Media index jumped 2.4% while the IT
index was up 0.9%.
Foreign institutional investors have also been pumping money
into Indian equities, having bought $2.83 billion worth of
shares this month until Aug. 12, compared with an inflow of $618
million all through July, data showed.
Asian shares tracked solid Wall Street performance as strong
overnight earnings for U.S. retail giants pointed to further
scope for the Federal Reserve to tackle inflation with rate
Meanwhile, in domestic markets, shares of Mahanagar Gas Ltd
fell as much as 3.8% after the company reduced prices
of compressed natural gas and domestic piped natural gas in and
(Reporting by Tanvi Mehta in Bengaluru, additional reporting by
Gaurav Dogra; Editing by Neha Arora)