Indian shares experienced an uptick for the third consecutive session on Thursday, driven by indications of declining U.S. inflation that boosted expectations the Federal Reserve might reduce interest rates in the coming months.
Investors also responded to the Federal Reserve's latest interest-rate decision. On Wednesday, the U.S. central bank maintained steady interest rates but warned that inflation remains too high to justify lowering policy rates immediately.
The recent projections revealed that Fed officials anticipate only one interest rate cut this year, a reduction from the three cuts forecasted in March.
Domestically, recent industrial output and retail inflation data, released after market hours on Wednesday, presented a mixed view of the Indian economy.
Government reports indicated that India's retail inflation eased to a 12-month low of 4.75 percent year-on-year in May, a slight decrease from 4.83 percent in April.
Conversely, India's industrial output growth decelerated to a three-month low of 5 percent in April, compared to 5.4 percent in March, primarily due to slower manufacturing growth.
The benchmark S&P BSE Sensex concluded the session 204.33 points higher, or a gain of 0.27 percent, at 76,810.90. The market received a boost from positive overnight cues from the U.S. and Europe and a decline in crude oil prices.
Oil prices dipped approximately 1 percent in European trading, breaking a three-day winning streak after data revealed an unexpected build in U.S. crude inventories and the International Energy Agency (IEA) projected a surplus in petroleum production of up to eight million barrels per day by 2030.
The broader NSE Nifty index finished at 23,398.90, up 75.95 points or 0.33 percent from its previous close.
In the Nifty pack, Titan Company, Divis Laboratories, HDFC Life, Mahindra & Mahindra, and Shriram Finance surged 3-5 percent, whereas Britannia Industries, Power Grid Corp, Axis Bank, Eicher Motors, and Hindustan Unilever declined 1-2 percent.
