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Indian shares close marginally higher; financials, Reliance offset vaccine cheer

By Reuters

  • 22 Jun 2021
Indian shares close marginally higher; financials, Reliance offset vaccine cheer
Credit: Thinkstock

Indian shares gave up most of their gains to end slightly higher on Tuesday, as optimism over the country's record surge in COVID-19 vaccinations was countered by losses in heavyweight financial stocks and conglomerate Reliance Industries.

The benchmark S&P BSE Sensex closed 0.03% higher at 52,588.71, while the blue-chip NSE Nifty 50 index gained 0.17% to end at 15,772.75.

Earlier in the day, the Sensex breached the 53,000 mark while the Nifty came within a whisker of its all-time high, as investor sentiment was lifted by India's record vaccination rollout of 8.3 million doses on Monday, and a recovery in global markets from four-week lows.

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However, losses in financial stocks and Reliance, along with a broader pullback in global shares, weighed on the indexes.

The Nifty Bank Index lost 0.36%, clocking its fourth session of losses in five. Reliance fell 0.5%, snapping a three-day streak of gains, and was the top drag to the Nifty 50.

But automakers and construction-related sectors like cement, which are seen benefiting from the easing of pandemic-induced restrictions, rose.

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The Nifty Auto Index closed 1.34% higher. Jefferies also said in a research note on Tuesday that India's auto demand is recovering again.

Maruti Suzuki was the top boost to the Nifty 50, jumping 5.3%.

Nifty 50 components Shree Cement and UltraTech Cement rose 3.6% and 1.2%, respectively, while construction giant Larsen & Toubro added 2.2% and was among the top boosts to the Nifty.

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Globally, eyes are on U.S. Federal Reserve Chair Jerome Powell's appearance before Congress for more clarity on the central bank's surprise hawkish shift last week.

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