Indian shares inch higher

Indian shares edged up on Friday as gains in pharma stocks more than offset losses in the auto sector, while investors await key announcements including the country’s inflation data and an expected rate hike by the US Fed next week.

The blue-chip NSE Nifty 50 index (.NSEI) ended 0.21 per cent higher at 16,630.45, while the S&P BSE Sensex (.BSESN) rose 0.15 per cent to 55,550.30 points. Both the indexes gained more than 2 per cent for the week, logging their first weekly gain in five.

“Equity markets gave positive returns this week even though uncertainties with respect to the Russia-Ukraine conflict continue. Amid sustained high inflation, market will closely monitor announcements at Federal Reserve meet scheduled next week,” said Shrikant Chouhan, head of equity research (retail) at Kotak Securities. Investors await inflation data which is expected on Monday around 1200 GMT. Indian retail inflation is likely to have slipped marginally in February, according to a Reuters poll of economists.

Data on Thursday showed US inflation accelerated at its fastest rate in four decades, bolstering expectations for more aggressive rate hikes at the Federal Reserve’s monetary policy meeting next week.

The Nifty Pharma index gained for a fourth straight session, closing 2.5 per cent higher. The index, however, is down 5.8 per cent for the year.

Nifty 50 components Maruti Suzuki and Mahindra & Mahindra ended 1.5 per cent and 0.6 per cent lower, respectively. The broader Nifty Auto was down 0.4 per cent after the Indian auto industry body reported sales data for February earlier in the day.