BENGALURU, Aug 11 (Reuters) - Indian shares closed at
four-month highs on Thursday, led by gains in technology and
bank stocks, after a softer-than-expected U.S. inflation data
eased fears of aggressive rate hikes by the Federal Reserve.
For domestic cues, investors are awaiting the consumer price
index (CPI) data due on Friday. India's retail inflation likely
eased in July due to a fall in food and fuel prices, but stayed
well above the central bank's upper tolerance limit of 6% for a
seventh consecutive month, a Reuters poll showed.
The NSE Nifty 50 index, posting gains for four
straight sessions, closed 0.71% higher at 17,659, and the S&P
BSE Sensex was up 0.88% at 59,332.60.
"The optimism came on the back of a U.S. consumer inflation
rate that eased in July after hitting the peak a month before,
raising hopes that the Fed will slow down the pace of interest
rate hike," said Prashanth Tapse, research analyst at Mehta
Equities, adding that bullish sentiment is likely to prevail as
overseas investors remain net buyers.
Foreign investors have bought a net $2.24 billion worth of
Indian equities so far this month, compared with $518 million
worth of net selling in the same period last month, according to
Nifty's IT index was settled 1.8% higher, with
Infosys, Tata Consultancy Services and Wipro
adding between 1% and 2%.
Nifty's public sector bank index climbed 2.4% to
snap a five-day losing run and was the best performer among
other sub-indexes. Top lender State Bank of India's, up
nearly 2%, was among the gainers of Nifty 50 index.
Globally, shares edged higher on optimism of a slower pace
of interest rate hikes after U.S. data pointed to inflation
peaking. The U.S. CPI, in the 12 months through July, increased
by a weaker-than-expected 8.5% after a 9.1% rise in June.
(Reporting by Rama Venkat in Bengaluru and additional reporting
by Gaurav Dogra; Editing by Dhanya Ann Thoppil and Shailesh