Sensex, Nifty Pare Early Gains

Indian shares eked out modest gains on Thursday as investors reacted to macroeconomic data and earnings releases from IT giants TCS and HCL Technologies

Global cues were positive on the back of China stimulus hopes and expectations that the U.S. Federal Reserve will soon halt interest rate hikes.

The benchmark S&P BSE Sensex ended the session up 164.99 points, or 0.25 percent, at 65,558.89, giving up some early gains.

The broader NSE Nifty index settled 29.45 points, or 0.15 percent, higher at 19,413.75 while the rupee traded up 21 paise at 81.97 against the greenback.

The dollar reached its lowest level in nearly a year and benchmark U.S. Treasury yields hit their lowest in over a week after data showed both headline and core inflation in the U.S. rose at a slower-than-expected pace in June, potentially bolstering the case for the Fed to stop raising rates.

Gold held near a four-week high in European trade while oil held gains after settling near the highest in two months overnight.

IT stocks topped the gainers list, with Tech Mahindra, TCS and Infosys climbing 2-3 percent.

Bajaj FinServ added 1.6 percent and Hindalco jumped 2.6 percent.

Power Grid Corp led losses to close 3.4 percent lower, while BPCL, Maruti Suzuki India, UPL and Coal India dropped 1-2 percent.