Hindalco boosts Indian shares at open
Indian shares opened higher on Tuesday, reversing three straight days of declines. The rally was led by Hindalco, which rose 2% after it beat quarterly profit estimates, driven by higher aluminum prices. The NSE Nifty 50 climbed 0.3% to 24,207 points, while the BSE Sensex gained 0.3% to 79,700.
Twelve out of the 13 major sectors advanced, with small- and mid-cap stocks also rising by 0.2% and 0.4%, respectively. Aishvarya Dadheech, CEO of Fident Asset Management, attributed the gains to traders buying the dip caused by recent declines. He noted that valuations had cooled, and the negative impact of September-quarter earnings reports had mostly passed.
The Nifty has dropped 8% since its record high on September 27, hit by weak corporate earnings and a nearly $14 billion outflow by foreign investors. Despite this, Tuesday’s gains signal some recovery.
However, there were exceptions. Britannia fell 2.5% after missing profit expectations for the second quarter, as urban demand slowed. Meanwhile, market participants are also awaiting India’s inflation data for October, due after market hours. Analysts expect inflation to rise to 5.81%, the highest in 14 months.
Overall, market sentiment was cautiously optimistic, driven by strong earnings from some sectors and investor hopes for stabilizing inflation data.
