BENGALURU — Indian shares closed higher on Tuesday, swinging between gains and losses through the session, while IT stocks continued to weigh on sentiment.
The NSE Nifty 50 index ended 0.5 % higher at 17,577.5, after falling as much as 0.8% in the session.
The S&P BSE Sensex rose 0.4% to 59,031.3.
The Nifty 50 index had risen 4.6% this month until Aug. 18, after which investors began to book profits. The index shed 2.6% in the previous two sessions.
“This could be a pullback rally before derivative settlement on Thursday,” said AK Prabhakar, head of research at IDBI Capital.
“We need to give it time to see if this recovery will sustain.”
India’s Nifty Auto index gained 1.8%. Mahindra and Mahindra rose 3.8% and Eicher Motors ended 3% higher.
Banks rose, with the Nifty Bank index closing the session 1% higher.
IT stocks stood out as laggards, with the Nifty IT index falling 1.7%.
Infosys Ltd fell 2.1% and was the top percentage loser on the Nifty 50 index, after a media report said the IT major had reduced average variable payout to 70% for the first quarter on margin pressure.
Global sentiment was bearish, as weakening economies in Germany and France piled more pressure as decades-high inflation and surging gas prices dragged Europe towards recession, pushing the euro to a 20-year low against the dollar.
(Reporting by Tanvi Mehta in Bengaluru; Editing by Neha Arora and Krishna Chandra Eluri)