IT, Realty Drive Stocks Into Green Ahead Of Key RBI Meetings

Indian shares held firm on Monday, while investors awaited directions from key central bank meetings in a data-heavy week, starting with the domestic retail inflation reading later in the day.

The blue-chip Nifty 50 index closed 0.21 per cent higher at 18,601.50, while the benchmark S&P BSE Sensex rose 0.16 per cent to 62,724.71.

Nine of the 13 major sectoral indexes advanced, with information technology (IT) rising 1.51 per cent. The IT index had lost nearly 2 per cent in the past two sessions. Realty stocks also added over 1 per cent.

Broader indices outperformed their larger peers, with midcaps and small-caps adding 0.55 per cent and 0.87 per cent, respectively. Both have logged gains for 12 weeks in a row. The midcap index hit a record high last week.

All eyes are now on domestic retail inflation data, due at 5:30 p.m. IST.

India's inflation likely cooled to a 20-month low of 4.42 per cent in May as food price rises slowed further, drawing closer to the Reserve Bank of India's medium-term target of 4 per cent, a Reuters poll of economists found.

"Inflation and industrial output estimates are priced to perfection," said a market analyst, who requested his firm not be named. "If the numbers miss estimates, it could lead to a near-term slide in markets."

Analysts also added that the impact of El Nino on monsoon rains will be a key monitorable, and expected the benchmark Nifty to consolidate for the next few weeks.

Global equities advanced on rising odds of a rate pause by the US Federal Reserve.

Among individual stocks, shares of Cochin Shipyard gained 3.38 per cent after being declared the lowest bidder for an Indian Navy contract to upgrade a ship.

CMS Infosystems rose over 5.5 per cent after funds, including SBI Mutual Fund, IIFL Mutual Fund-IIFL Focused Equity Fund and Abu Dhabi Investment Authority, picked up shares at the promoter's 13.75 per cent stake sale.