Bajaj Finserv lifts Indian stocks as investors look past rising inflation

The Bombay Stock Exchange (BSE) building is reflected in a man’s glasses as he watches a large screen outside the facade of the building in Mumbai, February 1, 2020. REUTERS/Francis Mascarenhas

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BENGALURU, Sept 13 (Reuters) – Indian stocks hit a five-month high on Tuesday, led by strong gains in Bajaj Finserv and HDFC Life Insurance, as investors looked past inflation higher than intended.

The NSE Nifty 50 Index (.NSEI) rose 0.65% to 18,053, 0441 GMT, while the S&P BSE Sensex (.BSESN) rose 0.65% to 60,503.02. Both indexes were set for their fourth consecutive session of advances.

Bajaj Finserv (BJFS.NS), a holding company for financial services firms, jumped 7.6%, ahead of a record-breaking stock split and free share issue.

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Shell lender Bajaj Finance (BJFN.NS), which is owned by Bajaj Finserv, rose 2.2%.

HDFC Life Insurance Company (HDFL.NS) jumped 4.7% to its highest level since June 9. Reuters reported on Tuesday that British asset manager abrdn plc (ABDN.L) will sell a stake in HDFC Life through a block transaction on Tuesday. Read more

The gains offset concerns about inflation accelerating to 7% in August, above both the 6.9% forecast in a Reuters poll of economists and July’s 6.71%.

Higher-than-expected inflation could prompt the central bank to raise interest rates again later this month.

Meanwhile, industrial production in July rose 2.4% slower than expected. Read more

“A weak industrial impression and a CPI above the RBI comfort zone are weighed against continued buying by foreign investors, weak oil prices and a weaker dollar index,” he said. said Ajay Bodke, an independent market analyst.

“Risk aversion towards emerging markets is receding,” Bodke added.

Aid sentiment was a strong finish on Wall Street overnight and gains among Asian peers on Tuesday.

Investors are also watching inflation data from the United States which will give indications of the outlook for interest rates, and hope that it could offer another signal that inflation has peaked.

Meanwhile, in domestic markets, Vedanta (VDAN.NS) rose 1.9% to hit a high in mid-June after Reuters reported the company had picked the prime minister’s home state Indian Narendra Modi, Gujarat, for his semiconductor project. Read more

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Reporting by Chris Thomas in Bengaluru; Editing by Neha Arora

Our standards: The Thomson Reuters Trust Principles.

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