BENGALURU (Reuters) – Indian shares soared on Monday, as gains in banking stocks outperformed Reliance Industries, fueled by sharp fall in oil industry third-quarter earnings -to-chemistry of the combination.
The NSE Nifty 50 blue index rose 0.12% to 14,388.75, while the BSE Sensex S&P benchmark rose 0.05% to 48,902.52 by 0520 GMT.
“Today is a day of volatility after Friday’s correction … It remains a buy on dip market,” said Samrat Dasgupta, chief executive of Esquire Capital Investment Advisors in Mumbai.
On Friday, Indian shares came in at a lower end, recovering from the highs hit in the previous session due to weakness in banks and metal stocks.
Billionaire Mukesh Ambani Industries Reliance Industries slipped as much as 4.7% in morning trading, marking the largest intraday loss in a day in more than a month and the biggest draw was the Nifty 50 blue-chip .
The operator behind the world’s largest refining plant reported a 30% drop in its oil-to-chemical division, but beat profit estimates for the third quarter as it consumed again. .
“The stock (Reliance Industries) had risen sharply and this correction was needed for some time,” said Dasgupta of Reliance, which gained around 5.8% last week before its results began. .
Bank stocks were among the top increases on the index, with shares of HDFC Bank rising 2.2% to be the biggest increase for Nifty, while Kotak Mahindra Bank gained 1.3% ahead of its quarterly earnings for released later in the day.
Shares of Tata Motors, which gained 11.2% last week, slipped 2.25% in morning trading, after the automaker walked down the prices of its passenger vehicles on Friday.
Wider Asian shares rose in line with the expectations of a $ 1.9 trillion fiscal stimulus plan to help the U.S. economy recover.
Reporting by Philip George in Bengaluru; Edited by Rashmi Aich