MUMBAI (NewsRise) -- Indian shares rose for the first time in seven sessions Thursday, outperforming other regional indices, as investors picked up beaten down metal stocks and index heavyweights.
However, caution ahead of a likely rate increase by the U.S. Federal Reserve and persistent disruptions in India's parliament limited gains.
The benchmark BSE Sensex ended 0.86% higher at 25,252.32 points, chalking its single largest percentage gain in almost three weeks. The broader NSE Nifty 50 Index rose 0.93% to 7,683.30 points. For the week, the Sensex remains 1.5% lower, and has declined 8% this year.
Bargain buying in metal stocks and index heavyweights Reliance Industries, Housing Development Finance and ITC, contributed majorly to gains, while Tata Motors, banking and pharmaceutical stocks lagged.
Regional stocks remained under pressure as a persistent slide in crude oil prices fuelled concerns of a global slowdown and as investors awaited the outcome of the Federal Reserve's December 15-16 meeting, where it is widely expected to raise rates.
In Asia, Japan's Nikkei 225 declined 1.32%, while Hong Kong's Hang Seng and China's Shanghai Composite fell 0.45% and 0.46%, respectively. South Korea's Kospi gained 0.50%. U.S. markets fell for the third consecutive day Wednesday.
"This risk reward ratio was not favouring short positions after the recent sharp selloff, a technical rebound and bargain buying was expected," Yogiraj Mahajan, Senior Analyst at Institutional Derivatives at Sushil Finance said. "However the trend remains on the downside and for a more sustained rally, we will need to see progress on the Goods and Services Tax."
India's main opposition party forced the adjournment of the lower house of Parliament for a third day Thursday, making it difficult for the Narendra Modi-administration to get approvals for key reforms, especially the long-awaited Goods and Services Tax.
Nineteen of the 30 constituents on the Sensex ended higher, while overall advancing issues outnumbered declining ones 1,852 to 818 and 184 closed unchanged.
Reliance Industries, the highest percentage gainer and the biggest contributor to gains on the Sensex Thursday, rose 3.71% to 949.90 rupees. The stock had fallen for five consecutive sessions previously, clocking a more than 6% decline
Mortgage lender HDFC, one of the highest weighted stocks on the Sensex, rose 2.3% to 1,181.10 rupees. It had shed 5.8% in the previous six sessions.
The BSE Metal index rebounded after a three day losing streak that cost it 7% of its value, to gain 1.65% Thursday. Tata Steel and Hindalco Industries gained 2.69% to 232.95 rupees and 2.71% to 75.75 rupees. The stocks had declined 7% and 8% in the last two sessions.
Cigarette maker ITC, one of highest weighted non-financial stock in the Sensex, rose 1.21% to 321.30 rupees. The stock witnessed an over 6.5% fall Monday on concerns the proposed Goods and Services Tax will carry a significantly higher rate of taxation on cigarettes.
India's second largest software company Infosys rose 1.66% to 1,046.40 rupees, gaining for the first time in eight sessions. It slipped 5.5% in the preceding seven sessions.
Pharmaceutical majors Lupin and Sun Pharmaceutical Industries remained in a downtrend, falling 1.42% to 1,736.10 rupees and 0.3% to 756.55 rupees.
Tata Motors and Mahindra & Mahindra lagged among the automakers, falling 1.18% to 389.30 rupees and 1.66% to 1,291.05 rupees.