Mumbai: Indian shares rose for a second consecutive session on Wednesday with Tata Consultancy Services Ltd hitting a record high after an industry body forecast software exports would grow in the next fiscal, while Tata Motors Ltd gained after key unit Jaguar Land Rover (JLR) reported a surge in monthly sales.
The gains mark a recovery from an eight-session losing streak that had sent the benchmark BSE index to its lowest level since 31 December 2012.
Still, caution remains, with attention shifting to January wholesale price data on Thursday, after the central bank sparked concerns about future interest rate cuts with a cautious statement on monetary policy last month.
Although the wholesale inflation index is expected to ease to a three-year low of 7%, that would still remain well above the Reserve Bank of India’s (RBI’s) perceived comfort zone of around 5%.
Markets could also be range-bound ahead of the 2013/14 budget, to be unveiled on 28 February, which will be critical in determining the government’s fiscal discipline.
“I think inflation data will be important, but the relevance of it may be overshadowed by expectations ahead of the budget,” said Jagannadham Thunuguntla, head of research, SMC Investments and Advisors Ltd.
RBI will not just take Wholesale Price Index (WPI) inflation, but will also consider other factors in its March meeting, added Thunuguntla. The benchmark BSE index rose 0.24%, or 47.04 points, to end at 19,608.08, marking its highest close in a week.
The broader NSE index rose 0.18%, or 10.45 points, to end at 5,932.95, closing above the psychologically important 5,900 level for a second day.
Tata Consultancy Services rose 1.8%, after earlier hitting a record high of Rs.1,441.65, on hopes earnings will improve in the fiscal starting in April on the back of an improving global economy.
The gains come a day after industry body, National Association of Software and Services Companies (Nasscom), forecast exports from the software services sector will grow 12-14% in 2013/14 to as much as $87 billion.
Other software services exporters also gained. Infosys Ltd shares rose 1.2%, while HCL Technologies Ltd ended up 4.6%.
Shares in Tata Motors gained 2.1% after luxury unit JLR posted a surge in both wholesale and retail sales last month.
Oil and Natural Gas Corp. Ltd gained 1.1%, clocking a second day of gains after quarterly earnings beat estimates on Monday.
Shares in Motherson Sumi Systems Ltd surged 6.7%, a day after posting a recovery in quarterly earnings and ahead of a planned stake sale that traders say could happen at a premium.
Among decliners, State Bank of India fell 1.8% on speculation the country’s biggest public sector bank could report higher-than-expected bad loans when it unveils October-December earnings on Thursday.
Shares in Tata Steel Ltd ended 2.3% lower ahead of its December quarter earnings on worries the steel maker would post a net loss.
The company after market hours reported a net loss of Rs.763 crore.
Kingfisher Airlines Ltd ended 5% lower, its maximum daily limit, after lenders said they would initiate recovery proceedings against the carrier. Reuters