BENGALURU (Reuters) - Indian shares ended higher on Tuesday, led by auto sectors, as investors hoped for further rate cuts from the country’s central bank amid a rise in retail inflation during the last month.
India’s retail inflation rose close to the Reserve bank of India’s medium-term target of 4% in September for the first time in 14 months, but analysts still predict a sharp economic slowdown will prompt a sixth consecutive interest rate cut in December.
The broader NSE Nifty ended 0.77% higher at 11,428.30, while the benchmark BSE Sensex closed up 0.76% at 38506.09.
The Nifty Auto index ended 2.23% higher as Eicher Motors closed up 4.69%, while Hero Motocorp, Maruti Suzuki and Mahindra and Mahindra ended firmer between 2.4% and 2.6%.
Meanwhile, Bharti Airtel was the top loser in the Nifty, closing 2.5% weaker, followed by Infosys, which ended down 2.3%.
Reporting by Derek Francis in Bengaluru, Editing by Sherry Jacob-Phillips