Indian shares closed at their highest in 18 months on Thursday, tracking gains in regional equities, as better-than-expected Chinese trade data boosted companies such as Tata Steel. The benchmark BSE index ended 0.41 percent higher at 29,045.28, while the broader NSE index closed up 0.39 percent at 8,952.50, their highest closing levels since early March 2015.
Both indexes fell as much as 0.25 percent earlier in the session. Tata Steel rose 3.3 percent while Hindalco Industries gained 1.4 percent, tracking gains in global metal prices following positive Chinese data. Asian shares held within one-year peaks on Thursday as Chinese trade data topped forecasts and imports recorded their first annual rise since late 2014. However, trading back home was choppy after shares hit an 18-month high on Wednesday as foreign institutional investors net bought shares worth $6.30 billion so far in the calendar year.
"Markets have moved up significantly in recent days, so a bit of consolidation is happening at current levels. But I don't expect any huge correction from current levels as liquidity remains supportive", said Sudip Bandyopadhyay, chairman and managing director of Inditrade Capital. Oil and Natural Gas Corp Ltd gained 2 percent after country's biggest exploration company on Wednesday reported better-than-expected June-quarter profit.
Yes Bank Ltd fell 2.7 percent after India's fifth biggest private sector lender by assets on Wednesday announced a share sale worth up to $1 bln in a bid to boost its capital base. Software exporter Tata Consultancy Services slumped as much as 6.4 percent and was last down 5.6 percent after the company said its financial sector clients in the United States are holding back on discretionary spending. Shares of other IT companies also fell, with Infosys and HCL Technologies dropping about 2 percent each.