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Indian stocks for best month in a year on auto, metals boost

Indian stocks for best month in a year on auto, metals boost

A man in a protective mask walks past the Bombay Stock Exchange (BSE) building in Mumbai, India, March 13, 2020. REUTERS/Francis Mascarenhas

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BENGALURU, July 29 (Reuters) – Indian benchmark indices are heading for their best month since August last year, with equities hitting a three-month high on Friday as metal and auto stocks rose.

The NSE Nifty 50 Index (.NSEI) rose 0.8% to 17,063, as of 0523 GMT, while the S&P BSE Sensex (.BSESN) rose 0.7% to 57,260.57.

The indices, which hit their highest levels since April 29, are up more than 8% so far this month on gains in auto, banking and metals stocks.

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Investor sentiment also received a boost after data showing the US economy’s contraction for the second straight quarter raised hopes that the US Federal Reserve would not opt ​​for aggressive rate hikes.

“Any negative news on the economic front is considered good news by the markets as they feel that weakness in economic activity will lead to constructive policies to support growth,” said Saurabh Jain, assistant vice president of research at SMC Global Securities. .

“The absence of sales and some small purchases from foreign institutional investors have also contributed to sentiment,” Jain said.

Foreign investors have sold $320.85 million worth of Indian equities so far this month, the smallest outflow since November 2021.

The Nifty Metal Index (.NIFTYMET) rose 3.3% on hopes of strong demand in China, while the auto index (.NIFTYAUTO) gained 1.3%, with TVS Motor Co (TVSM.NS) 6% rose after a higher June quarterly profit.

SBI Life Insurance (SBIL.NS) rose 9.1% and was the biggest gainer in the Nifty after a higher quarterly profit.

Shares of industrial equipment manufacturer GMM Pfaudler (GMMP.NS) rose a staggering 18% after a 17-fold jump in quarterly earnings.

The rupee rose to a nearly three-week high against the dollar, which fell on easing concerns about aggressive Fed rate hikes. read more

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Reporting by Nallur Sethuraman and Gaurav Dogra in Bengaluru; Editing by Subhranshu Sahu and Vinay Dwivedi

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