Mumbai: Indian shares closed 0.6% higher on Wednesday as investors remained bullish ahead of major earnings in the next few sessions, with firmer global markets also boosting sentiment.
“Today is no different. We are tracking the US, Asian and European markets,” said Arun Kejriwal, director of research firm KRIS. “We seem to be following the same trend every day in the past few sessions.”
At 11:37 GMT, the pan-European FTSEurofirst 300 was up 1.7% while MSCI’s broader measure of Asian markets other than Japan rose 0.8%.
The BSE 30-share index Sensex rose 0.55%, or 99.09 points to 17,977.23, with 19 of its components closing in the green.
Metal and auto stocks led the gains in the Indian market with technology stocks also advancing.
The metal makers firmed up further as metal futures continued to gain on the London Metal Exchange.
Tata Steel, the world’s seventh largest steelmaker, was up 4% at Rs529.95, Sterlite Industries gained 4.3% to Rs173.30, while Hindalco Industries rose 2.3% to Rs156.25.
“The rally in the metal stocks was overdue. We have been hearing of improvement in demand,” said SP Tulsian, a Mumbai-based independent investment analyst.
Auto stocks gained on hopes of robust earnings in the next few days, given the strong sales volumes in the last few months.
Bajaj Auto, which reports quarterly earnings on Thursday, was up 0.7%, while leading carmaker Maruti Suzuki, due to announce its earnings on Saturday, rose 0.1%. Tata Motors was up over 1% while Mahindra & Mahindra closed 2.5% higher.
Top software firm Tata Consultancy Services, which reported a forecast-beating earnings last week and said it was seeing strong demand, rose as much as 1.5% while Wipro Ltd, which reports earnings on Friday, ended 1.8% higher. Infosys gained 0.3%.
Index heavyweight Reliance Industries, which had declined in the past three sessions, was up 0.5% at Rs1,058.25.
Largest lender State Bank of India and HDFC Bank bucked the gaining trend over concerns of a rise in interest rates later this month and closed down 0.5% each.
“Where is the pessimism for the Indian markets? The results have been good. Today, metals and autos were up while banking (shares) took a pause. This shows people have been waiting to buy where they see value,” Tulsian added.
He expects the markets to be positive till the expiry of the futures, which happens on the last Thursday of the month.
The NSE 50-share index Nifty closed up 0.6% at 5,399.35 points.
In the broader market, advancing shares outpaced declining ones in the ratio of 1.1:1, with 399.4 million shares changing hands.