Indian shares closed higher on Wednesday after a late rebound in consumer stocks, led by Tata Consumer Products on a report of its stake purchase in Haldiram's, eclipsed global growth concerns.
The Nifty 50 index rose 0.18% to 19,611.05, while the S&P BSE Sensex settled 0.15% higher at 65,880.52. Both the benchmarks had lost over 0.4% during the session before rebounding in the final hour.
The fast moving consumer goods index climbed 1%, led by a 3.85% rise in Tata Consumer after Reuters reported that the Tata group company is in talks to buy a stake in local snack food maker Haldiram's. Tata Consumer was the top Nifty 50 gainer.
Metal stocks slid 0.79% after data showed that China's services activity expanded at the slowest pace in eight months in August, spurring concerns over growth in world's second-largest economy. China is the largest producer and consumer of metals.
Tata Steel and Hindalco Industries were among the top Nifty 50 losers.
Data from the euro zone and Britain also showed a slide in business activity in August, casting a pall, while hawkish commentary from a Federal Reserve official and lower-than-expected fall in US factory orders dragged information technology (IT) stocks down 0.16%.
Meanwhile, a rise in Brent crude futures to above the $90-mark for the first time since November 2022 capped the gains in domestic equities.
"Increasingly the market is showing signs of weakness driven by weaker monsoon and stronger dollar," said Jaykrishna Gandhi, head of business development, institutional equities, at Emkay Global Financial Services.
"If crude prices rise further, it will be detrimental for oil importers like India."
Among individual stocks, sugar companies including Balrampur Chini Mills , Shree Renuka Sugars , Dalmia Bharat Sugar and Dwarikesh Sugar added between 1.5% and 6.1%, on rising sugar prices due to production concerns.
