Indian shares rose on Wednesday, tracking gains in Asian markets, on hopes that the worst of the coronavirus in China may have passed.
The broader NSE Nifty 50 index rose 0.8% to 12,207.60 by 0402 GMT and the benchmark S&P BSE Sensex was up 0.89% at 41,582.60.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.31% as China’s senior medical adviser on Tuesday forecast the epidemic would peak this month, bringing cheer to global investors.
In the domestic market, metal stocks and state-owned banks led gains among sectors.
“Markets know that the epidemic risk will subside in a quarter or two,” said Saurabh Jain, assistant vice president at SMC Global Securities, in New Delhi
“There is also a lot of liquidity in markets.”
The Nifty metals index rose about 1% as global metal prices saw modest gains on subsiding virus worries. The Nifty PSU index, which tracks state-owned banks, gained 0.75%.
Carmaker Tata Motors led gains on the blue-chip index, rising 1.6%, followed by steelmaker Tata Steel, which rose 1.7%.
IndusInd Bank was among the top laggards of the day, down 1.6%, after rating agency Moody’s changed its outlook to “negative” on the lender.
Meanwhile, investors also awaited key inflation data for the month of January. A Reuters poll from last week showed retail inflation likely rose to a near six-year peak in January as food prices stayed high.
Higher inflation has kept the country’s central bank from raising interest rates amid concerns of a lack of sufficient stimulus to drive growth in Asia’s third-largest economy.