Indian shares firm ahead of key cenbank 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 (.NSEI) index closed 0.21% higher at 18,601.50, while the benchmark S&P BSE Sensex (.BSESN) rose 0.16% to 62,724.71.

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

Broader indices outperformed their larger peers, with midcaps (.NIFMDCP100) and smallcaps (.NIFSMCP100) adding 0.55% and 0.87%, respectively. Both have logged gains for 12 weeks in a row. The midcap index hit a record high last week.

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

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

Among individual stocks, shares of Cochin Shipyard Ltd (COCH.NS) gained 3.38% after being declared the lowest bidder for an Indian Navy contract to upgrade a ship.