By Bharath Rajeswaran
BENGALURU (Reuters) -India’s benchmark indexes and mid-cap stocks settled at record closing highs on Wednesday, led by metal and energy stocks on expectations of strong global demand, while investor focus turned to key U.S. inflation data.
The NSE Nifty 50 was up 0.49% at 22,753.80, hitting an all-time high in intraday trade for the third straight session, while the S&P BSE Sensex added 0.47% to 75,038.15.
Both the blue-chip indexes logged record closing highs, with the Sensex settling above 75,000 for the first time.
The broader, more domestically-focussed small- and mid-caps rose about 0.75% and 1%, respectively, with the latter hitting a record closing high for the third time in five sessions.
“The rebound in (small- and mid-cap stocks) in April is more due to investors willing to take risks, and not driven by fundamentals,” said Kush Gupta, a director at SKG Investments & Advisory.
Small- and mid-caps have gained 8.52% and 4.79%, respectively, so far this month, recovering from a 4.42% and 0.54% drop in March.
“Poor earnings could trigger further volatility,” added Gupta, terming March-quarter earnings, starting from Friday, as key to sustaining high valuations.
Metals rose 1.18%, hitting a record high for a second straight session.
Vedanta climbed 7.04% after CLSA double-upgraded the stock to “buy” from “underperform” and raised its target price by 50%.
The metals index has risen 9% in April so far, outperforming the 2% rise in the benchmark indexes after data showed manufacturing growth in China and the U.S.
Oil and gas and energy stocks rose 1.5% and 1.07%, respectively, led by a 1.09% gain in Reliance Industries and supported by Hindalco Industries and Coal India, which added 2.45% and 3.75%, respectively.
Investors now await a key U.S. inflation reading for March, due later in the day. Hotter-than-expected inflation data will likely add to worries of delays in U.S. rate cuts.
Indian markets will be closed on Thursday for a holiday.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema and Varun H K)
