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Indian shares rise on metals, IT boost; Tega Industries soars in debut
Photo Credit: Reuters

Indian shares scaled three-week highs on Monday, helped by IT, metals and energy stocks, with sentiment also aided by global markets pushing ahead on hopes COVID-19 vaccines would limit the economic hit from the Omicron variant. 

The blue-chip NSE Nifty 50 index gained 0.69% to 17,631.70 by 0430 GMT, while the benchmark S&P BSE Sensex rose 0.66% to 59,169.60. Both indexes touched their highest since Nov. 22, with the Sensex reclaiming its 59,000 level for the first time since Nov. 18. 

The Nifty metal index rose as much as 1.77% and hit its highest in nearly a month, led by a 4.8% jump in APL Apollo Tubes while Vedanta Ltd gained 3.06% after approving over the weekend a second interim dividend. 

Metals stocks were also underpinned by a bounceback in benchmark iron ore futures after China said it would focus on economic stability next year. 

"Iron ore prices have corrected, steel prices have remained range-bound and coking coal prices have reduced - all helping metal stocks," said Anita Gandhi, director, Arihant Capital Markets. 

However, Gandhi said continued market volatility and a weak rupee could cause worries. 

Among other major sub-indexes, the Nifty energy index advanced 1.6%, boosted by a 3.7% jump in Tata Power and a 3.4% rise in PowerGrid Corp of India. 

IT stocks rose 1.4%, with both Coforge Ltd and L&T Technology Services up 4.6%. 

Among individual stocks, Tech Mahindra climbed 3.14% to hit a record high, while Axis Bank gained 2.6%. 

Tega Industries soared 68% in its market debut. The stock opened at 760 rupees, compared with the offer price of 453 rupees, valuing the mining equipment maker at 10.39 billion rupees ($137.30 million). 

Asian stocks pushed ahead with investors confident markets can weather outcomes from a host of central bank meetings this week.  

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