BENGALURU India’s Nifty 50 index hit a five-month high on Tuesday as signs of a recovery in Chinese economic activity powered gains in metal stocks, with less worse-than-feared domestic earnings reports also helping sentiment amid a rise in coronavirus cases.
A jump in Chinese iron ore futures on the Dalian Commodity Exchange and data pointing at China’s economy gathering pace boosted metal stocks in India, analysts said.
“Metals were huge underperformers. With the economy opening up and data from China pointing to an improvement in the economy, they are catching up,” said Vinod Nair, head of research at Geojit Financial Services.
The Nifty metal index rose as much as 3.26% to a more than five-month high. Tata Steel Ltd climbed 4.08%, while Hindalco Industries Ltd advanced 4.48% to the top of the Nifty 50.
The NSE Nifty 50 index gained as much as 0.92% to its highest since March 5. It was up 0.76% at 11,356.75 by 0514 GMT and on track to finish higher for the sixth straight session.
The benchmark S&P BSE Sensex climbed 0.86% to 38,513.18.
“Investors are choosing to look past the coronavirus threat and focus on how companies are performing,” said Rusmik Oza, head of fundamental research at Kotak Securities in Mumbai.
Coronavirus infections in India jumped by 53,601 to 2.27 million on Tuesday, the third biggest caseload after the United States and Brazil.
Shares of Triveni Engineering and Industries Ltd jumped more than 15% after the sugar manufacturer’s quarterly profit surged.
On Monday, Divi’s Laboratories Ltd and Cipla Ltd scaled record highs on robust earnings.
ICICI Bank Ltd advanced as much as 3% after the private-sector lender launched a share sale.
On the Nifty 50, Titan Company Ltd was the top loser, slipping as much as 4.57% after the watch maker posted a quarterly loss on Monday.