Indian shares open higher as tech, banking stocks gain

A general view of the Bombay Stock Exchange (BSE), after Sensex surpassed the 50,000 level for the first time, in Mumbai, India, January 21, 2021. REUTERS/Francis Mascarenhas

BENGALURU (Reuters) – Indian shares bounced back on Tuesday, helped by gains in the technology and banking sectors, while increasing worries that Chinese property giant China Evergrande could default on its debt pile gripped global markets.

The blue-chip NSE Nifty 50 index climbed 0.31% to 17,450.5 by 0340 GMT, and the benchmark S&P BSE Sensex rose 0.24% to 58,630.06.

On Monday, Indian shares dropped 1% as metal stocks plunged more than 6% on fears of a China Evergrande default. On Tuesday, metal stocks opened 0.2% higher.

Investors now await cues on the U.S. monetary policy from a Federal Reserve meeting that starts later in the day. The central bank is likely to lay the groundwork for an eventual tapering of its bond buying programme.

Tech stocks advanced 0.6%, with HCL Technologies rising 1% to be the top gainer on the Nifty 50 index.

In broader Asia, markets were jittery amid fears of a China Evergrande default rippling through the Chinese property market, while trading was thin due to holidays in China, Taiwan and South Korea. [MKTS/GLOB]

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