Mumbai: Markets edged 0.2% higher on Tuesday as export-driven software services companies pulled back from a recent decline.
Private-sector lender HDFC Bank , the country’s third-largest lender, slipped 0.2% as investors awaited quarterly earnings due around 2:00pm.
A Reuters poll showed the bank, which is the first of the major lenders to detail earnings for the June quarter, may report a 31.2% rise in net profit.
At 11:03am, the 30-share BSE index was up 0.16% at 18,536.90 points, with 17 components advancing. The 50-share NSE index was up 0.2% at 5,577.65.
“We are just about in the positive because Asia is not doing bad today,” said Arun Kejriwal, director of research firm KRIS.
“The risk-taking capacities are going to be subdued with the debt woes in the US and Europe.”
Foreign funds have moved $2.6 billion into Indian shares since June 23, but the inflow is slowing.
Leading software firms Tata Consultancy Services , Infosys gained 0.7% and 0.6% respectively.
The sector index was up 0.5% after sliding more than 6% over the past six sessions, on hopes the business environment outlook may be better than expected.
IBM signings of new business at its services division surged 16% in the second quarter, trouncing expectations and raising hopes that 2011 will be a good year for the technology sector.
Wipro , Indian’s third-largest software services firm, bucked the trend and was down 0.6% ahead of its quarterly earnings on Wednesday,.
A Reuters poll earlier this month forecast Wipro may report a 4.3% decline in its net profit from the previous quarter.
Advancing shares beat declining ones in the ratio of 1.7 to 1 on the NSE, where 134 million shares were dealt.
The MSCI’s measure of Asian markets other than Japan were barely changed, while Japan’s Nikkei slipped 0.7%.
ING Vysya Bank was up 3.3% at Rs 360.45 after the private-sector lender posted a forecast-beating 36% jump in net profit for the June quarter led by higher lending growth, fee income and better asset quality.
Edserv Softsystems rose 5.4% to Rs 135.25 after it said it has entered into a partnership with CAClubIndia, which will help the education services company deliver its chartered accountancy coaching content to about 600,000 students.