Indian shares inch higher after recent slide; IT stocks lead
INDA•Indian shares edged higher after a two-day selloff, with the Nifty 50 up 0.2% and the Sensex up 0.46% by 10:21 a.m. IST. The Nifty IT index rose 2.6%.
1. Indexes edge higher
Indian shares were marginally higher on Wednesday after falling about 1.8% in each of the previous two sessions. By 10:21 a.m. IST, the Nifty 50 was up 0.2% at 22,762 and the Sensex had gained 0.46% to 72,877.11; both were down about 5.5% in September.
2. IT stocks lead gains
Thirteen of 16 major sectors advanced, while small- and mid-cap indexes each added 0.6%. The Nifty IT index rose 2.6% and looked set to end an eight-session losing streak after dovish comments from a Federal Reserve official lowered bets on a U.S. rate hike. The article said higher U.S. rates are likely to curb client spending for IT firms, which generate a significant share of revenue from the U.S.
3. Foreign selling persists
Foreign investors sold shares worth 99.8 billion rupees ($1.04 billion) net on Tuesday, their biggest outflow in about four months. They sold $2.7 billion in September, bringing year-to-date selling to $26.75 billion. Brent crude futures rose 0.5% to $103.10 a barrel after U.S. President Donald Trump denied he would be willing to ease sanctions on Iran.
