Indian shares rose on Thursday, led by IT and financials and tracking broader Asia as global bond markets steadied after the U.S. Treasury announced steps to bring down rising borrowing rates.
The Nifty 50 (.NSEI) rose 0.50% to 24,197.48 and the BSE Sensex (.BSESN) added 0.66% to 77,431.57, as of 9:39 a.m. IST.
The 50-stock index fell in the last seven sessions, losing 2.1% in its longest run of declines in 11 months, as higher oil prices and bond yields dampened appetite for risk assets.
The U.S. Treasury said overnight it would double buyback sizes for long-duration debt, aiming to curb the recent rise in yields after the 30-year Treasury yield hit its highest level since 2007 earlier this week.
The move eased investor nerves over rising borrowing costs, sending the dollar lower and supporting stocks. Asian stock markets advanced on the day, tracking an uptick in U.S. equities overnight.
"The near-term market sentiment has turned cautiously positive, after U.S. Treasury measures helped ease bond market stress, improving risk appetite that could support a recovery in domestic equities after the recent fall," said Hitesh Tailor, technical research analyst at Choice Broking.
Thirteen of the 16 major sectors logged gains. The broader small-caps (.NIFSMCP100) and mid-caps (.NIFMDCP100) rose 0.8% and 0.5%, respectively.
Financials (.NIFTYFIN) added 0.7%.
Gold-loan lenders Manappuram Finance (MNFL.NS) and Muthoot Finance (MUTT.NS) gained 2.9% and 3.9%, respectively, as gold prices climbed to their highest level in more than two months, supported by lower U.S. Treasury yields and a weaker dollar.
Higher gold prices boost the value of collateral pledged with Manappuram and Muthoot, supporting larger loan disbursals and reducing credit risk.
