Auto leads recovery in Indian shares after last week's slide
Technology
Auto leads recovery in Indian shares after last week's slide
(Reuters) - Indian shares rose Friday to log gains in a holiday-thinned week, led by auto stocks after last week's sharp drop made valuations relatively more attractive.
The Nifty 50 rose 0.27% to end at 23,813.4 on the day, while the BSE Sensex added 0.29% to 78,699.07.
Both benchmarks gained about 1% each this week, after a 5% slide last week, the most in 30 months, as the U.S. Federal Reserve's projection of fewer rate cuts in 2025 tarnished the appeal for emerging markets.
"The latest drop in Indian markets has cooled valuations in large-caps and the dip in the markets has been met with buying activity," Motilal Oswal Wealth Management said in a note.
Analysts expect the market to drift until the quarterly earnings season starts in the second week of January.
Nine of the 13 major sectors advanced this week.
The tobacco company's gains were spurred by India's finance minister's comments last weekend that tax rates on some items, including tobacco, would not change, contrary to market expectations of an increase.
On the day, Cochin Shipyard climbed 5% after it won an order worth 4.5 billion rupees ($52.6 million), while water treatment company VA Tech Wabag rose 4% on winning a 78-million-euro ($81.2 million) order.
