Indian shares hit record highs as investors focus on earnings and interest rate decision

Indian shares hit a record high on Wednesday as investors remained upbeat in the middle of corporate earnings season and ahead of the central bank’s policy meeting. The Nifty 50 index rose 0.79% to 16,258.05, led by gains in financial services index which was up 2.44%. Earlier the benchmark reached a session high of 16,290.20. On Tuesday, the Nifty 50, which represents the weighted average of 50 of the largest Indian companies on the National Stock Exchange, closed above the 16,000 level for the first time.

Meanwhile, the S&P Sensex was up 0.79% at 54,247.64 on Wednesday, retreating from a session high of 54,440.80. Shares of Indian banks climbed: HDFC rose 2.6%, Axis Bank was up 1.8% and ICICI added 3.2%. State Bank of India shares, however, declined 0.4%. India’s largest public lender is due to report earnings for the three months ending June on Wednesday.

Indian markets have held up comparatively well despite the economy’s struggles since last year to get growth back on track — progress was delayed by a devastating Covid-19 second wave this year. Investors are also looking ahead to the decision by the Reserve Bank of India, which begins its three-day monetary policy meeting on Wednesday. The central bank is expected to leave interest rates unchanged.

India’s retail inflation numbers for May and June came in above the RBI’s inflation target range of 2% to 6%. The resilience of India’s stock markets has seen an influx of retail investors, despite the pandemic-led struggles in the economy.

Indian shares hit record highs as investors focus on earnings and interest rate decision, CNBC, Aug 4