Metals lead rise in Indian shares ahead of US jobs data

Adani group stocks lost between 0.3% and 3.5%, after a report showed on Thursday that Adani family partners used offshore funds to invest in the conglomerate’s stocks. Adani rejected the allegations.

The Nifty 50 and Sensex have risen marginally this week so far, including today’s gains. The benchmarks had logged losses for the last five weeks, after hitting record highs on July 20.

”The ongoing consolidation is healthy as the benchmarks had reached overvaluation zones during the recent rise,” said Samrat Dasgupta, CEO at Esquire Capital Investment Advisors.

The Nifty gained 14.16% between March and July before shedding 2.53% in August.

Investors now await the U.S. jobs report due later in the day. A rise in unemployment could allow the Federal Reserve to pause rate hikes at its September meeting. [MKTS/GLOB]

Meanwhile, official data on Thursday showed that India’s GDP expanded 7.8%, on an annual basis in the June-quarter, the fastest in a year.

However, economists warned that dry weather conditions could weigh on growth in the coming quarters.

”A shortfall in monsoon could hurt market momentum,” said Rahul Sharma, head of technical research at Equity 99.

Among individual stocks, ITD Cementation surged 11.5% on winning a contract worth 32.90 billion rupees ($397.9 million).

Emami rose over 3% after Citi upgraded the stock to ”buy” from ”neutral”.

($1 = 82.6800 Indian rupees)