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Adani Stocks Lift Indian Shares Amid Caution on US Debt Ceiling Talks

Adani Stocks Lift Indian Shares Amid Caution on US Debt Ceiling Talks

Ten of the 13 major sectoral indexes advanced

Bharath Rajeswaran, Reuters News

Indian shares advanced on Tuesday, aided by a broad-based rally across sectors and powered by Adani group stocks, while a slide in the high-weightage IT stocks capped gains amid uncertainty over the U.S. debt ceiling talks.

The blue-chip Nifty 50 index closed 0.18% higher at 18,348. IST, while the benchmark S&P BSE Sensex rose 0.03% to 61,981.79.

Ten of the 13 major sectoral indexes advanced, with metals jumping 2.59%. Adani Enterprises Ltd, which has a 17% weightage in the metals index, jumped over 13% and was the top Nifty 50 gainer.

All the Adani group stocks surged between 0.3% and 14% and extended gains for the third session after markets regulator Securities and Exchange Board of India drew a blank in a probe into suspected violations in the group's overseas investments.

The Supreme Court's expert panel ruled out a regulatory failure in the allegation of price manipulation.

"The high integrity of the members of the panel must have given confidence to investors to buy the beaten down (Adani) stocks," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

The U.S. debt ceiling talks did not yield an agreement on Monday, but both U.S. President Joe Biden and House Republican Speaker Kevin McCarthy vowed to continue negotiations.

However, the uncertainty lost IT nearly 0.5%. The index, which had risen 2.5% in the previous session, powering the rise in markets, was the top sectoral loser on Tuesday.

Among individual stocks, Divi's Laboratories Ltd jumped 3.61%, extending gains for a second session, after the active pharmaceutical ingredients maker reported a revenue and core profit beat in the March quarter.

The stock has jumped over 9% in the last two sessions and was among the top gainers in the Nifty 50 on Tuesday.

($1 = 81.7800 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Varun H K, Sohini Goswami and Janane Venkatraman)

Source: ZAWYA