Indian shares rose on Wednesday, led by gains in Reliance Industries after KKR & Co’s investment deal in the conglomerate’s retail arm and as India and China agreed to not send more troops to the contested border flashpoint.
The broader NSE Nifty 50 index rose 0.7% to 11,228 and the S&P BSE Sensex 0.8% to 38,027.75 by 0508 GMT. Both the indexes dropped in the past four sessions and have shed nearly 3% so far this week.
Shares of Reliance rose 2.9%, providing the top boost to the benchmark index after it said U.S. private equity firm KKR will invest 55.50 billion rupees ($755.09 million) in the conglomerate’s retail arm.
Meanwhile, China and India agreed to stop sending more troops to a Himalayan flashpoint and avoid any actions that might complicate the tense situation there.
“Reliance and IT stocks have been the biggest boost to the markets. The negative sentiment over the second wave of virus cases and lockdowns will not go off in a day and investors need to be cautious,” said Siddharth Khemka, head of retail research at Motilal Oswal Securities.
The IT services subindex on the NSE was the top index gainer, rising 1%.
“The breakdown in the markets yesterday (Tuesday) led to long liquidations and the panic is not completely off and we are seeing profit-bookings,” Anand James, chief market strategist at Kochi-based Geojit Financial Services said.
“We have derivatives expiry on Thursday, which is likely to play in the minds of traders. Nifty rollovers in the last couple of days have been below the six-month average,” James said.
Shares of Sun Pharma rose as much as 2.39% after it launched a psoriasis drug, Ilumya, in Japan through its unit.