Indian shares end higher on upbeat global cues; tech, auto stocks jump

·2-min read
A man wearing a protective mask walks past the Bombay Stock Exchange (BSE) building in Mumbai

BENGALURU (Reuters) -Indian shares closed higher on Tuesday, boosted by technology and auto stocks, as investors mirrored positive trends in global markets and shrugged off worries around the Omicron variant of the coronavirus.

The NSE Nifty 50 index ended up 0.86% at 17,233.25 and the benchmark S&P BSE Sensex rose 0.83% to 57,897.48.

The Nifty auto index rose 1.3%, while IT (information technology) stocks added 0.97%.

"IT will continue to be at a premium valuation. It is the most stable segment and the story they have about digitalisation is going to improve over the coming years. They are defensive in nature and a very safe sector in terms of volatility," Vinod Nair, head of research at Geojit Financial Services, said.

Indian benchmark indexes are still off by nearly 7% from a peak touched in October, pressured by a combination of factors, including fears over heated valuations and a surge in Omicron cases globally.

The country approved this week Merck's COVID-19 pill and two more vaccines for emergency use, as it braces for a possible spike in infections from the highly infectious strain.

"While the market's trend might be volatile in the near term ... strong earnings delivery along with positive macro-economic data would hold the key to drive markets upwards," Motilal Oswal said in a note.

In global markets, shares in Europe and Asia inched up, on Tuesday, helped by another record-setting day on Wall Street. [MKTS/GLOB]

Authorities in Britain and France have held off from imposing tough restrictions on movement, betting that high vaccination rates will stop hospitals from being overwhelmed even as cases surge.

Among individual shares, Asian Paints and Sun Pharma were among top gainers on the Nifty 50 index, rising 2.9% and 2.64%, respectively.

Active pharma ingredient maker Supriya Lifescience ended up 42.7% on its Mumbai market debut day, compared with an initial public offering price of 274 rupees.

(Reporting by Nallur Sethuraman in Bengaluru; editing by Uttaresh.V)

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