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Money News

Indian shares end flat; metal stocks gain

BENGALURU (Reuters) - Indian shares ended little changed on Wednesday as a string of upbeat quarterly earnings reports failed to offset concerns over rising domestic coronavirus cases.

The Bombay Stock Exchange building is seen from a facade in Mumbai, India, May 16, 2018. REUTERS/Francis Mascarenhas/Files

The NSE Nifty 50 index .NSEI, which had risen as much as 1%, ended 0.06% higher at 11,101.65. The index pared gains after heavyweights Reliance Industries RELI.NS and HDFC Bank HDBK.NS turned negative to end roughly 1% lower.

The S&P BSE Sensex .BSESN closed 0.07% lower at 37,663.33.

The metals sector .NIFTYMET climbed 4% to its highest level since March 5 and clocked its best one-day gain since end-April. Thirteen of its 15 constituents ended higher, with Hindalco HALC.NS jumping 8.3% and state-run Steel Authority of India Ltd SAIL.NS rising 6.2%

On Tuesday, SAIL reported a 50% jump in July sales, while Jindal Steel & Power JNSP.NS saw steel sales rise 29%.

Adding to the upbeat results were mid-sized companies including Sun Pharma Advanced Research SPRC.NS and agri-chemcials producer PI Industries PIIL.NS that reported strong June-quarter earnings on Tuesday.

Corporate earnings have been far better than originally feared, with company executives no longer clueless about the future as they were at the start of the COVID-19 pandemic around March, said Siddharth Khemka, head of retail research at Motilal Oswal Securities in Mumbai.

“If you see (company) managements talking now, they’re saying there’s a lot of improvement on a sequential level, with demand going back to 70-80% of pre-COVID levels,” Khemka said.

Surging coronavirus cases, however, could cap any gains from earnings, he added.

On Tuesday, COVID-19 infections in India topped 1.9 million, clocking a 50,000-plus rise for the seventh straight day.

Meanwhile, gold jumped to a record high on Wednesday and European and Asian stocks rose.

Reporting by Sachin Ravikumar; Editing by Aditya Soni

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