Mumbai: Indian shares rose 0.4% on Friday as Asian stocks recovered from earlier lows, with top lender State Bank of India touching fresh record highs, after Thursday’s forecast-beating results announcement.
Tata Steel rose as much as 4.1% as investors shrugged off the gloomy outlook and the quarterly net profit which lagged estimates.
“While Corus results slightly disappointed, it was more than compensated by strong profitability at the India operations,” Goldman Sachs said in a note reiterating a “buy” rating on the stock.
“While we expect 2QFY11 to be relatively weak, due to seasonal softening of demand and cost push, we expect prices to start firming up by early Sep leading to a strong 2HFY11.”
The stocks pared some gains and was trading 1.6% higher at Rs528.35.
By 10:37 am, the BSE 30-share index Sensex was trading up 0.35% at 18,137.96 points, with 18 of its components trading in the green.
In the broader market, gainers were more than double the number while 119 million shares changed hands on the BSE.
“Good set of numbers from SBI and Tata Motors have insulated us from the weakness in global stocks over last few days,” said Neeraj Dewan, director of Quantum Securities.
“The trend continues to look bullish as monsoon has fared well and economic growth outlook is strong. That said, some consolidation is not ruled out.”
The Sensex is up 3.9% so far in the year, backed by foreign fund inflow of $11.3 billion.
This is in addition to a record $17.5 billion inflow in 2009, which drove the benchmark 81% higher.
The NSE 50-share index Nifty was up 0.5% at 5,444.05.
SBI rose as much as 3% to an all-time high of Rs2,867.95.
Optimistic outlook for demand for loans in the world’s second-fastest growing major economy pulled up financials.
Leading private lender ICICI Bank climbed 1.6% while mortgage lender Housing Development Finance Corp firmed 0.3%.
Second-largest mobile operator Reliance Communications was down 2.1% ahead of its quarterly earnings announcement, on concerns its results would not match those of rival Bharti, which reported earlier this week.
Oil explorer Cairn India rose 1.7%, a day after India-focused Vedanta Resources said it was in talks to buy a stake in the Indian company that would be the diversified miner’s first move into oil and gas.
Elsewhere, the MSCI’s measure of Asian markets other than Japan was up by 0.9% while Japan’s Nikkei climbed 0.3%.