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INDIA STOCKS-Indian shares steady even as Polish blast rattles wider Asia markets

Reuters · 11/16/2022 00:36
INDIA STOCKS-Indian shares steady even as Polish blast rattles wider Asia markets

Updates shares; Adds analyst comment

By Praveen Paramasivam

- I shares were largely unchanged on Wednesday as gains in the banks and IT sectors helped overshadow concerns in global markets following blast in Poland that local authorities said were caused by Russian-made missiles.

The NSE Nifty 50 index .NSEI rose 0.03% to 18,409.05 as of 0507 GMT. The S&P BSE Sensex .BSESN, which closed at a record high in the previous session, gained 0.08% to 61,923.28.

That comes in contrast to the 1.1% drop in MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS caused by the potential for a further ratcheting up of geopolitical tensions. MKTS/GLOB

"India is in a much better spot both in terms of the fiscal health of the Government of India and the recent growth prospects of the economy," Gaurav Dua, head of capital market strategy at Sharekhan, said.

Although, "there are signs of little weakness due to incident in Poland and of possible tinkering in capital gains tax in the (India) budget," Dua added.

NATO member Poland said a Russian-made rocket killed two people in eastern Poland Ukraine. Moscow denied it was responsible and U.S. President Joe Biden said early information suggested the blast may have been caused by a missile fired from Russia.

Separately, India would exceed budget estimates for direct tax collection by 25%-30% in fiscal 2023, an income tax official from India's finance ministry said.

Among the biggest gainers were Nifty's banks .NSEBANK and IT .NIFTYIT indexes, which gained at least 0.3% each, and made up for declines in the fast-moving consumer goods .NIFTYFMCG and metal .NIFTYMET sectors.

RBL Bank RATB.NS rose 2% as CEO R. Subramaniakumar told Reuters it is looking to ramp up its retail exposure to protect its books from being over-exposed to large corporates.

Paytm-parent One 97 Communications PAYT.NS fell 2.9% to a five-month low.

($1 = 81.1000 Indian rupees)

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Dhanya Ann Thoppil, Savio D'Souza and Eileen Soreng)

((Praveen.Paramasivam@thomsonreuters.com; https://twitter.com/PraveenR_P ; +91 867-525-3569;))