By Bharath Rajeswaran and Vivek Kumar M
(Reuters) -India’s equity benchmarks inched higher on Monday as gains in metals and autos outweighed losses in IT stocks, which fell on global trade jitters and weak U.S. economic data.
The Nifty 50 rose 0.28% to 24,632.35 points and the BSE Sensex gained 0.18% to 80,753.85 as of 10:21 a.m. IST. Both benchmarks added about 0.4% in early trade.
Eleven of the 16 major sectors logged losses. The broader small-caps and mid-caps climbed about 0.4% each.
The day’s rise follows last week’s 1.1% drop in the benchmarks – their fifth consecutive week of losses, as the U.S. imposed steep tariffs on several trading partners, including a 25% duty on India, heightening global growth worries.
U.S. data showing weaker-than-expected July job growth and significant downward revisions for prior months further raised bets for a Federal Reserve rate cut in September.
IT companies, which earn a significant share of revenue from the U.S., fell 0.4%, weighed down by softer U.S. jobs data.
Metals gained 1.6%, with 14 of the sub-index’s 15 constituents rising, as a softer dollar made commodities cheaper for overseas buyers. [MET/L]
Autos advanced 1.1%, led by TVS Motor, which grew 2.4%. The stock rose 2% on Friday after strong quarterly results.
Hero MotoCorp climbed 2.3% after posting a 21% jump in July dispatches.
Tariff jitters are still hurting U.S.-exposed names, but domestic cyclicals – autos, financials, consumption – are holding fort and lending some resilience, said analysts led by Sunil Koul of Goldman Sachs.
“Still, 25% tariffs could carve out another 2% from MSCI India earnings, on top of the 3% EPS drag expected from 15% duties.”
Among individual stocks, courier services provider Delhivery rose 4.4% on upbeat June-quarter results.
Multi Commodity Exchange of India gained 4.1% after reporting strong growth in first-quarter profit and revenue.
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sumana Nandy and Ronojoy Mazumdar)
