BENGALURU, May 16 (Reuters) - Indian shares closed higher on
Monday after six consecutive sessions of losses, driven by gains
in Eicher Motors, and some cement stocks after Adani Group
announced a $10.5 billion deal that will make it the
second-biggest cement producer in the country.
The NSE Nifty 50 index gained 0.38% to 15,842.30 at
close, and the S&P BSE Sensex advanced 0.34% to
52,973.84. The indexes rose over 1% each in the session earlier.
"In a bear phase, there will be relief rallies, but such
rallies are unlikely to sustain, given the relentless selling by
foreign institutional investors (FIIs)," said V K Vijayakumar,
chief investment strategist at Geojit Financial Services.
Foreign investors sold $1.81 billion worth of Indian
equities last week, Refinitiv data showed.
"It's important to appreciate the fact that FIIs are selling
not because they are bearish on India but because U.S. bond
yields are attractive and the dollar is strengthening,"
Royal Enfield owner Eicher Motors settled 7.6%
higher and was the top gainer on the Nifty 50. It reported https://bit.ly/3ljNBXD
consolidated net profit of 6.10 billion rupees ($78.53 million)
for the March quarter, up nearly 16% from a year earlier.
Ambuja Cements and ACC closed 2.5% and
3.9% higher, respectively, after Adani Group said it would buy
Swiss company Holcim AG's controlling stake in the
Rivals UltraTech Cement and Shree Cement
settled 2.9% and 2.6% lower, respectively, and were the top
losers on the Nifty 50 index.
Asian and European shares fell after weak economic data from
China added to fears of a slowdown in growth. China's April
retail sales plunged 11.1% on the year, almost twice the fall
India's state-owned insurance behemoth Life Insurance Corp
is expected to list on the stock exchanges on Tuesday.
($1 = 77.6760 Indian rupees)
(Reporting by Rama Venkat in Bengaluru; Editing by Subhranshu
Sahu and Shinjini Ganguli)