INDIA STOCKS-Indian shares snap four-day losing run in low-volume session
(Updates levels, adds analyst comments)
BENGALURU, Dec 26 (Reuters) - Indian shares rose for the first time in five days in a low-volume session on Monday, with the rebound helped by mixed U.S. data that bolstered bets of smaller interest rate hikes by the Federal Reserve.
The Nifty 50 index was up 1.08% at 17,999.85 by midday, and the S&P BSE Sensex gained 1.08% to 60,494.09. The Nifty fell 3.3% in the previous four sessions and dropped below the psychologically key 18,0000 mark on Friday.
"I expect the markets to recover sharply as the punishment meted out on Thursday and Friday was unwarranted", said G Chokkalingam, founder and head of research at Equinomics Research and Advisory.
Data late on Friday showed U.S. personal income rose more than expected last month, while consumer spending barely rose and inflation cooled further, rekindling bets of smaller-sized rate hikes from the Federal Reserve and improving risk appetite.
However, Chokkalingam cautioned of low volumes. "Normally, trading is thin this time of the year. Expect dullness in the market as foreign institutional activity dies down as they go on holidays."
Forty-one of the Nifty 50 constituents advanced, as did most of the major sectoral indexes.
The advance was led by metal stocks, which rose more than 2%, tracking the rise in metals on the weak dollar and hopes of better demand after top consumer China's pledged to boost its economy and real estate sector.
Banking stocks also rose with and rising over 1% and 3% respectively.
Among individual stocks, Tata Motors rose over 2%, set to snap a five-day losing run, after signing an electric bus deal with Delhi Transport Corp.
New Delhi Television Ltd rose over 4% after founders Prannoy and Radhika Roy said they would transfer their 27.26% stake in the news broadcaster to the Adani Group.
Index heavyweight Larsen and Toubro advanced 1.95% after bagging orders worth 10 billion rupees and 25 billion rupees. (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza and Eileen Soreng)
