Mumbai: Indian shares climbed for the fifth straight day gaining 0.3% on Monday, with second-largest private lender HDFC Bank scaling a record high on forecast-beating quarterly results, while normal monsoon forecast and firm global markets supported sentiment.
After market hours last Friday, the weather department said the summer monsoon was likely to be normal this year, allaying fears over an event crucial to the economic fate of the world’s second-most populous nation.
Good rainfall would help India’s farm output rebound after last year’s drought, the worst in 37 years, which triggered a sustained rise in inflation as food prices soared.
Local share gains were limited by falls in Reliance Industries, ICICI Bank and Maruti Suzuki, as investors gave a thumbs down to their quarterly earnings which missed street view.
The 30-share BSE index rose 0.29% or 51.08 points at 17,745.28 points, with 18 of its components advancing. The 50-share NSE index climbed 0.4% to 5,322.45 points.
“Market is just dancing to the tunes of corporate earnings that are coming in. The trend will continue for some time,” said Neeraj Dewan, director of Quantum Securities in New Delhi.
The benchmark had risen 0.6% last week after snapping a 9-week rally in the week before. “We are now fairly valued and perhaps, this is the last leg of the rally,” said Dewan.
The country’s main stock index has underperformed its global peers on Monday following falls in index heavyweight such as Reliance, he added.
Top-listed firm Reliance Industries, which has the highest weight on the Sensex, closed 1.6% lower at Rs1,069.80 rupees, after it said late Friday quarterly net profit rose 30%, below street expectations.
Brokerage firm Anand Rathi said it sees continued growth in Reliance’s exploration and production business in the current fiscal year on higher D6 block gas and crude output. Its refining margins are seen improving, but its petrochemical margins could come under pressure, the brokerage added.
HDFC Bank rose as much as 2.8% to a record high of Rs1,997.85, after it reported on Saturday its quarterly profit rose by a third, bolstered by a pick-up in credit demand.
“In our view, with its strong capital adequacy and substantial branch expansion, the bank is set to further gain CASA (current accounts to savings account) market share and achieve a strong growth in fee income, as the economic environment continues to improve,” Angel Broking said in a note.
The stock closed 2.4% higher at Rs1,990.90.
But larger rival ICICI Bank shed 1.6% as its 35% rise in March quarter net came below market forecasts.
Top state lender State Bank of India shed 0.2%, while mortgage lender Housing Development Finance Corp rose nearly 4%.
Top carmaker Maruti Suzuki declined nearly 2% as it said its fourth-quarter net profit more than doubled on strong sales, but missed forecasts.
Non-ferrous metals producer Sterlite Industries closed nearly 6% higher as its board approved a one-for-one bonus issue and set a two-for-one stock split ratio.
It also said its January-March quarterly profit jumped 131%.
Sun Pharmaceutical tumbled 4.8% after a New Jersey jury handed a victory to Pfizer and rejected allegations by Teva and the Indian drugmaker that the patent on Protonix was obvious and should be declared invalid.
In the broader market, gainers outnumbered losers in a ratio of 1.1:1 on a volume of 381 million shares, lower than that on last Friday.
In the broader market, the MSCI’s measure of Asian markets other than Japan was up 1.2% by 1043 GMT, while the FTSEurofirst 300 index of top European shares was up almost a%.