BENGALURU, June 13 (Reuters) -
Indian shares advanced on Tuesday, with the broader midcap index hitting a fresh record on improved sentiment after data showed domestic retail inflation cooled in May.
The blue-chip Nifty 50 index was up 0.51% at 18,697.35 as of 10:27 a.m. IST, while the benchmark S&P BSE Sensex rose 0.54% to 63,062.86.
All 13 major sectoral indexes logged gains, with FMCG climbing 1.5%. Thirteen of its 15 constituents edged higher.
High weightage financials rose 0.3% while information technology added 0.5%.
The broader indexes also advanced in line with their larger peers, with midcaps rising as much as 0.88% to a fresh record high. Smallcaps added 0.64% to hit a new 52-week high.
The uptick in domestic equities comes after data showed that domestic inflation
eased
to a more than two-year low of 4.25% in May, aided by slide in food inflation and favourable base effect. Industrial output
rose
4.2% year-on-year in April, well above the estimated 1.8% expansion.
"Favourable macroeconomic data, rising odds of a Fed rate pause augur well for Indian shares," Samrat Dasgupta, chief executive at Esquire Capital Investment Advisors said, adding that monsoons could be a defining factor for the trajectory of markets in the near term.
Global equities rose ahead of U.S. inflation data on Tuesday and Fed's policy decision on Wednesday. The odds of a rate pause stood at 80.4%.
Among individual stocks, Mankind Pharma rose as much as 4.73% after global brokerage JP Morgan initiated coverage with an "overweight" rating, on hopes of continued market share gains and strong volume growth.
Zee Entertainment
lost
nearly 7% after the market regulator barred its former chairman, Subhash Chandra, and managing director and chief executive, Punit Goenka, from company boards for one year, potentially delaying its merger with local unit of Japan's Sony.
($1 = 82.3853 Indian Rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann Thoppil)
