BENGALURU, May 16 (Reuters) – Indian shares jumped on Monday after five consecutive weeks of losses, with Ambuja Cements and unit ACC up as conglomerate Adani Group said it would buy Holcim AG’s controlling stake in the companies.
The NSE Nifty 50 index (.NSEI) gained 0.96% to 15,934.40 by 0510 GMT and the S&P BSE Sensex (.BSESN) advanced 0.85% to 53,240.26, even as broader Asia struggled to sustain a minor rally after shockingly weak data from China.
On Friday, both the Sensex and the Nifty marked their longest weekly losing streak since 2020.
“In a bear phase, there will be relief rallies, but such rallies are unlikely to sustain, given the relentless selling by foreign institutional investors (FIIs),” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
Foreign investors sold $1.81 billion worth of Indian equities last week after offloading $635 million in the previous week, Refinitiv data showed.
“It’s important to appreciate the fact that FIIs are selling not because they are bearish on India but because U.S. bond yields are attractive and the dollar is strengthening,” Vijayakumar said.
On Monday, shares of Ambuja Cements (ABUJ.NS) and ACC (ACC.NS) jumped 4% and 8.3%, respectively, after Adani Group said it would buy Holcim AG’s (HOLN.S) cement businesses in India in a $10.5 billion deal to become the second-biggest cement producer in the country.
Royal Enfield owner Eicher Motors (EICH.NS) climbed 6.4% and was the top gainer on the Nifty 50. It reported late on Friday consolidated net profit of 6.10 billion rupees ($78.53 million) for the March quarter, up nearly 16% from a year earlier.
Asian share markets stumbled and oil prices slid after weak data from China underlined the deep damage lockdowns are doing to the world’s second-largest economy.
Source By: Reuters