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Indian shares at 12-week high, Bajaj Finance surges

A man wearing a protective mask walks past the Bombay Stock Exchange (BSE) building in Mumbai, India, March 13, 2020. REUTERS/Francis Mascarenhas

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BENGALURU, July 28 (Reuters) – Indian shares jumped to their highest in 12 weeks on Thursday, lifted by a surge in non-bank lender Bajaj Finance after its earnings blew past estimates, while a U.S. Federal Reserve rate hike on expected lines soothed investor nerves.

The NSE Nifty 50 index (.NSEI) was up 1.2% at 16,841.35, as of 0501 GMT, while the S&P BSE Sensex (.BSESN) rose 1.33% to 55,560.9, both touching their highest level since May 5, ahead of another batch of blue-chip earnings reports.

The Fed’s 75 basis point hike in interest rates and Chair Jerome Powell’s comments dismissing chances of a recession offered some relief to investors who had been on the sidelines this week ahead of the policy meeting.

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“We’ve taken on strong global cues after the Fed moved on expected lines. The Fed’s commentary that it would only move on large hikes in the future if data warrants it has further improved sentiment,” said Gaurav Dua, head of capital market strategy at Sharekhan.

ICICI Securities raised its target for the Nifty 50 to 17,500 from 16,600 for the coming months on structural improvement, with crude and industrial commodities prices falling sharply and India’s Volatility Index (.NIFVIX) cooling.

Bajaj Finance (BJFN.NS) soared 9.4% in its biggest intraday percentage jump since November 2020, topping gains on the Nifty 50, after the non-bank lender reported stronger-than-expected first-quarter results.

Bajaj Finance’s holding company, Bajaj Finserv (BJFS.NS), which is also expected to report results, decide on a bonus share issue and a stock split on Thursday, jumped 8.2%.

The Nifty Financial Services index (.NIFTYFIN) advanced 1.9% to a 15-week high.

Meanwhile, auto heavyweight Tata Motors (TAMO.NS) slid 3.8% in its sharpest intraday drop in over six weeks after reporting a bigger loss on a jump in costs. read more

SpiceJet (SPJT.NS) dived 9.3% to a March 2020 low after India’s aviation regulator on Wednesday halved the budget carrier’s capacity citing recent safety snags. read more

Nifty 50 components Dr Reddy’s Laboratories (REDY.NS), Nestle India (NEST.NS) and SBI Life Insurance (SBIL.NS) are scheduled to report results later in the day.

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Reporting by Chris Thomas in Bengaluru
Editing by Dhanya Ann Thoppil

Our Standards: The Thomson Reuters Trust Principles.

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