Indian shares rose for a third straight session on Tuesday, led by gains information technology sector and a surge in Tata Consultancy Services after a report that Walmart may buy a stake in Tata Group’s new digital platform.
The broader NSE Nifty 50 index rose 0.3% to 11,260.85 and the S&P BSE Sensex climbed 0.3% to 38,079.65 by 0453 GMT. Both the indexes have risen nearly 4% in the past two sessions.
Walmart Inc is in talks with Tata Group for an investment of up to $25 billion in the Indian salt-to-software conglomerate’s new “super app”, Mint newspaper reported.
“Pharma and IT stocks will continue to do well this year. But, they have already run up a lot and are high in valuation. Banks must go up in a big way for the Nifty to go up,” said Yogesh Nagaonkar, chief executive of Rowan Capital Advisors.
“There is no judgement yet on the moratorium (case). One has to see how the banks are recovering loans and look at the coming quarter results to see how they are doing, in terms of asset quality and the COVID-19 impact,” he added.
Shares of Tata Consultancy Services rose 3% and were the top boost to the Nifty 50 index. This pushed the Nifty IT index higher by 1.3%.
The Nifty bank index was down 1% and the public sector bank index fell 1.3%.
Analysts said markets will get a direction after the Reserve Bank of India’s monetary policy decision. The RBI on Monday said it was rescheduling its policy meeting that was due to be held between Sept. 29 and Oct. 1.
Meanwhile, Asian markets largely opened higher, building on newfound momentum after bargain hunters helped a recovery in U.S. markets in the wake of last week’s selloff.
Reporting by Nallur Sethuraman in Bengaluru; editing by Uttaresh.V