1 / 2Nifty, Sensex track broader Asia higher; banks, FMCG stocks shineA man speaks on his mobile phone past a newly launched Nifty Indices logo inside the National Stock Exchange building in Mumbai
BENGALURU (Reuters) - Indian shares reversed early losses and moved upward on Monday, in line with broader Asia, led by banking and fast-moving consumer goods (FMCG) stocks, as investors hoped for more impetus from the government amid slowing economic growth.
The broader NSE Nifty rose 0.55% at 11,004.55 as of 0510 GMT, while the benchmark BSE Sensex moved 0.54% lower at 37,178.58.73.
Global stock markets gained on Chinese central bank's move to cut its cash reserves to shore up liquidity in Asia's biggest economy, which is flagging due to the trade war.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1%.
Meanwhile, India's ministers promised action to revive India's auto industry last week, after top bosses last week urged New Delhi to revive the sector plagued by a demand crunch that is resulting in hundreds of thousands of job losses.
Government data from last month showed that the economy grew at its slowest pace in over six years, underscoring the need for Prime Minister Narendra Modi's government to revive India's industries. The NSE index has fallen over 8% since Modi was sworn in for a second term in May.
"(The markets) would be more excited on the back of likely announcements from our government on the domestic front," said Ashish Nanda, executive vice-president at Kotak Securities.
"Technically, across the globe the markets are forming higher bottom that would minimize down side."
The Nifty banking index, which tracks both state-owned and private-sector lenders, rose 0.8%. The FMCG index was up about 1%.
But auto stocks dragged markets the most, with the index falling as much as 1.5% and heavyweights Tata Motors Ltd and Maruti Suzuki India Ltd shedding about 2% each ahead of monthly data from the Society of Indian Automobile Manufacturers (SIAM).
(Reporting by Derek Francis in Bengaluru; Editing by Rashmi Aich)