BENGALURU, June 23 (Reuters) - Indian shares bucked a
broader downturn on Thursday as weak metal and oil prices drove
beaten-down automakers to their best day since April 2020.
The NSE Nifty 50 index rose 0.93% to 15,556.65,
while the S&P BSE Sensex climbed 0.86% to 52,265.72.
The indexes have added around 1.7% so far this week, after
two consecutive weeks of decline fuelled by concerns over
interest rate hikes and growth.
Aiding sentiment on Thursday was a further retreat in crude
prices as investors assessed recession risks and the
impact of higher rates on fuel demand. Cheaper oil tends to
benefit oil-importing countries like India.
"Fall in crude oil prices gave some respite to the market,
although concerns of persistent foreign investor selling and
rising bond yields in the U.S. will continue to keep traders on
edge," said Shrikant Chouhan, head of equity research (retail)
at Kotak Securities.
Analysts also said central bank commentary that inflation
was expected to come down to 4% in 2023-24 was underpinning
The Nifty Auto index was the best performing
subindex, surging 4.4%. Recession worries sent metal prices
sharply lower, boosting automakers which have grappled with
rising input costs for several quarters.
The auto index had fallen around 6% this month, up to last
India's largest carmaker Maruti Suzuki gained the
most on the Nifty 50, rising 6.3% to its highest since late
February. Truckmaker Eicher Motors and two-wheeler
maker Hero MotoCorp jumped 5.9% each.
Bajaj Auto jumped 4.1% after the two- and
three-wheeler maker said it would consider a share buyback on
Monday, after deferring the proposal last week.
Route Mobile also surged 8.5% on share buyback
India's largest company Reliance Industries
slipped for a second straight day, ending 1.6% lower and capping
gains on the Nifty.
(Reporting by Chris Thomas in Bengaluru; Editing by Devika