By Vivek Kumar M and Bharath Rajeswaran
(Reuters) -India’s benchmark equity indexes snapped a three-day losing streak on Wednesday, led by gains in pharma and financial stocks, but settled off highs as concerns over foreign outflows kept investors on edge.
The Nifty 50 and the BSE Sensex both ended 0.5% higher at 24,813.45 and 81,596.63, respectively.
The indexes rose as much as 1% earlier in the day, after declining 1.5% over the previous three sessions.
All 13 major sectors rose while the broader small-caps and mid-caps rose 0.4% and 0.8%, respectively.
“Global uncertainties like Moody’s U.S. rating downgrade and the consequent increase in yields are triggering temporary fluctuations,” said Rajat Baid, partner at Mahaveera Capital Advisors. “The market remains in a consolidation phase.”
U.S. stock index futures slipped and Treasury yields surged amid growing fiscal anxiety as investors focused on discussions around U.S. President Donald Trump’s tax-cut bill that has been plagued by Republican infighting.
Foreign portfolio investors sold shares worth 100.2 billion rupees ($1.2 billion) on Tuesday, as per provisional data, the biggest single-day outflow since February 28.
Investors are also monitoring progress in the India-U.S. trade talks after U.S. President Donald Trump said last week that India had proposed a “zero tariffs” trade deal for American goods.
On the day, financials rose 0.6% after dropping 1.2% in the previous session.
Pharma stocks gained 1.3% after the U.S. Department of Health and Human Services said that drug price cuts would exclude generics — in a relief to Indian biosimilar and generic manufacturers that count the U.S. as a key market.
Information technology stocks advanced 0.7%, snapping a three-day losing streak.
Shares of Bharat Electronics jumped 5.3%, topping the list of Nifty 50 gainers, after the defence company guided for more than 15% revenue growth in the current fiscal year on the back of strong order flows.
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Mrigank Dhaniwala)
