BENGALURU, June 24 (Reuters) - Indian shares marked their
first weekly gain in three on Friday, lifted by sharp gains in
automakers and financial stocks, as a slide in commodity prices
offered some respite from broadening inflationary pressures.
The NSE Nifty 50 index closed 0.92% higher at
15,699.25, while the S&P BSE Sensex climbed 0.88% to
52,727.98. Both the indexes posted weekly gains of 2.7%.
"The recent correction in the prices of several commodities,
especially industrial metals, is providing some light at the end
of the tunnel with hopes of some of the inflationary pressures
easing out," said Milind Muchhala, executive director at Julius
Prices of copper, a bellwether for economic output with its
wide range of industrial and construction uses, are headed for
their worst week in a year, while oil prices have slid on
concerns over a slowdown in demand.
"The combination of softening inflation and a weakening
economy can put the global central banks on some sort of a back
foot and go less hawkish in their tightening cycle going ahead,
which will be supportive of equities," Muchhala added.
The Nifty and the Sensex had fallen for two straight weeks
on concerns of central bank aggression amid surging inflation.
The Nifty Auto index climbed 2% to an over
three-week high on Friday after jumping 4.4% in the previous
session, with Mahindra and Mahindra rising 4.6% to a
record high. The Nifty FMCG index advanced 1.2%.
The Nifty Bank index rose 1.5%.
Shares of ONGC climbed 1.9% after the oil explorer
said its unit struck oil in an onshore block in Colombia.
Hero MotoCorp closed 3.2% higher after the
two-wheeler maker said on Thursday it would hike prices by up to
3,000 rupees to counter rapid inflation.
(Reporting by Chris Thomas in Bengaluru; Editing by Maju