Indian shares in the IT, auto, and pharmaceutical sectors rose, counteracting declines in financial services and metals. The Nifty 50 increased by 0.16% to 19,465, while the S&P BSE Sensex rose by 0.21% to 65,539.42. IT stocks went up by 0.59%, with Infosys leading the way due to a $1.64 billion deal with Liberty Global. Pharma stocks increased by 0.61% after Lupin received FDA approval for a drug to treat blood pressure and heart failure. The auto industry gained 0.64% following the Indian government’s approval of a $7 billion electric bus deployment scheme. Financial services, banks, and private banks experienced declines of 0.3% to 0.5%. The Nifty has decreased by 2.57% since reaching a record high on July 20, while the financials index has dropped by 4.85% in the same period. Foreign investors are reducing their investments in financials, which make up over 37% of the Nifty 50. In the first half of August, foreign portfolio investors bought shares worth 7.37 billion rupees, the lowest inflow since February. Meanwhile, metals fell by 0.94% due to weak macro data from China. The increase in inflation could negatively impact corporate earnings in the near future and lead to further consolidation.
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