Sensex at record high as India shares defy Asia weakness
The S&P BSE Sensex rose as much as 0.31% to a record high of 62,484.67. The NSE Nifty 50 index jumped 0.25% to a fresh 52-week high of 18,565.95, around 40 points shy of its all-time high.
Indian stocks rose on Monday, with the blue-chip Sensex hitting a record high, aided by gains in oil marketing companies as crude prices slid following protests in major Chinese cities against strict zero-COVID policies.
The benchmark Indian indexes had opened lower, mirroring the weakness in other Asian markets due to worries about the protests in China over strict Covid-19 curbs. The MSCI Asia ex-Japan index shed 1.41%.
But Indian shares reversed course as oil futures fell more than $2 a barrel as the protests in top importer China fuelled demand concerns. Oil-importing countries like India tend to benefit from lower crude prices.
The S&P BSE Sensex rose as much as 0.31% to a record high of 62,484.67. The NSE Nifty 50 index jumped 0.25% to a fresh 52-week high of 18,565.95, around 40 points shy of its all-time high.
The Nifty Midcap 100 and Nifty SmallCap 100 outperformed their larger peers, rising 0.72% and 1.12%, respectively. The Nifty oil and gas index rose over 1.5%.
"Positive catalysts such as falling crude oil prices and U.S. dollar index could keep the markets in good stead," said Prashanth Tapse, senior vice president (research) at Mehta Equities.
Reliance Industries, India's most valuable company, was the biggest boost to the Nifty, climbing 2.6% to its highest since mid-June, after an initial 4.4% slump.
The oil-to-chemicals conglomerate also helped lift the energy index along with Indian Oil Corp and Oil India Ltd.
Hero Motocorp rose 3.5% to an over two-month high after announcing a price hike on its motorcycles and scooters from Dec. 1 to offset costs related to inflation.
Meanwhile, a Reuters poll showed the Indian economy likely returned to a more normal 6.2% annual growth rate in the quarter ended September, after clocking double-digit expansion in the previous quarter. India's GDP data is due on Wednesday.