Mumbai: Indian shares rose on Wednesday, led by gains in Bharti Airtel Ltd after the top Indian mobile carrier raised its call charges, but sentiment remains constrained ahead of key company results and a critical central bank decision on interest rates next week.
The federal government is taking a series of steps to maintain confidence in the economy, assuring investors it is committed to fiscal prudence in the coming budget and brushing aside threats of a downgrade, as it eyes growth of 5.7% in the current fiscal year.
Larsen and Toubro Ltd earnings will be on investors’ radar on Thursday. The earnings are expected to remain subdued but management commentary on order guidance will be important.
Maruti Suzuki India Ltd earnings on Friday and central banks’ rate meeting next week are the next big events being watched.
“Earnings so far have been better than expectations, so there is a positive bias which would continue to drive markets,” said Phani Sekhar, Fund Manager-PMS, Angel Broking Ltd.
The benchmark BSE index, Sensex, rose 0.23%, or 45.04 points, to end at 20,026.61. The broader NSE index, the Nifty, rose 0.10%, or 5.8 points, to end at 6,054.30.
Shares in Bharti Airtel gained 4.44% after the company raised its voice call charges to account for rising costs, a move that is likely to boost its fourth-quarter earnings.
ZEE Entertainment Enterprises Ltd shares gained 5.41% after the company reported higher-than-expected margins and net profit, which stood at Rs.193 crore in the December quarter, led by higher subscription revenues.
Blue chip companies that have reported better earnings so far also gained. ITC Ltd shares rose 1.37%, while Reliance Industries Ltd gained 0.31%.
Sun TV Network Ltd shares rose 3.56% after the company reported a higher-than-estimated December quarter net profit at Rs.190 crore.
Shares of FMCG major Hindustan Unilever Ltd (HUL) tumbled 4.43%, extending Tuesday’s loss, after the company said it decided to increase the rate of royalty payment to parent Unilever Plc. A number of brokerages downgraded the stock after the company’s statement .
Tata Motors Ltd shares fell 1.98%, with traders citing concerns over December-quarter earnings.
However, shares in India’s Housing Development and Infrastructure Ltd (HDIL) fell 14.33% after its vice chairman and managing director Sarang Wadhawan sold a partial stake in the company. HDIL said on Tuesday Wadhawan sold 5 million shares worth Rs.57 crore ($10.59 million) in secondary markets, reducing his stake to 0.99% from 2.19%.
Syndicate Bank shares fell 5.27% after its adjusted profits missed estimates. Reuters