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India Shares gain as banks boost

September 19, 2022

India Shares gain as banks boost
Indian shares edged higher in volatile trade on Monday, helped by gains in banking stocks, while investors awaited a host of central bank meetings this week to gauge the impact of rate hikes on global economy.

The NSE Nifty 50 index (.NSEI) rose 0.7% to 17,649 as of 0455 GMT and the S&P BSE Sensex (.BSESN) was up 0.6% at 59,208. Both the indexes lost over 1.5% last week.

Investors braced for a week littered with 13 central bank meetings that are certain to see borrowing costs rise across the globe and some risk of a super-sized hike in the United States.

“The entire market is focusing on U.S. Federal Reserve statement this week even though it has already discounted a 75 basis points rate hike,” said Prashanth Tapse, research analyst, Mehta Equities.

Markets will be looking at the Fed’s guidance for November, when another 75 basis points-hike is expected, Tapse said.

Despite Indian markets losing nearly 2% last week, foreign investors purchased a net $819 million worth of Indian equities, although they disposed of a net $258 million in the last two trading sessions, according to Refinitiv Eikon.

Data showed that tally for the month as of last close stood at $1.52 billion in net inflows.

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