Bangalore: Shares were trading 0.4% higher on Wednesday after sliding more than 6% over the past six-day, but investors were wary of the near-term outlook because of rising prices and rate rise concerns.
Export-led outsourcer Infosys Technologies, which is expected to raise its full-year growth forecast when it releases quarterly results on Thursday, was among the gainers.
The bellwether added more than 1% while bigger rival Tata Consultancy Services (TCS) rose more than 2%.
Tata Steel fell as much as 2.7% after the world’s No. 7 steelmaker said it expects quarterly operating results to decline from the preceding quarter, hurt by rising raw material prices and weak demand.
By 10:22 am, the 30-share BSE index was trading up 0.4% at 19,266.02, with 17 of its components gaining.
“There is some optimism today. We could bounce back after the fall in the last six sessions,” said Arun Kejriwal, strategist with research firm KRIS. “However, the bigger concerns remain on inflation and liquidity.”
Investors were awaiting November industrial output data due by 11:00 am, and December inflation on Friday, both of which would determine the quantum of rate increase by the central bank on 25 January.
A Reuters poll showed industrial output growth probably slowed to 6.6% in November from a year earlier, as price rises began to bite in Asia’s third-largest economy, which is growing at almost 9%.
Financials, which had been beaten down on rate worries, pulled back on talk the fall may have been overdone. The banking sector index rose 1.1%.
State Bank of India climbed 1.3% and rival ICICI Bank rose 1.8% while HDFC Bank was up 0.3%.
In the broader market, gainers led losers in a ratio of 2.2:1 on volume of about 79 million shares.
The 50-share NSE index was up 0.5% at 5,783.70 points.
The MSCI’s measure of Asian markets other than Japan was up 0.5% by 10:15 am, while Japan’s Nikkei was trading 0.2% higher.
Stocks on the move
Pfizer India rose as much as 4.4% after the drugmaker’s November quarter net profit surged 69%.
Valecha Engineering Ltd was trading almost 3% higher after the company said it had won orders worth Rs195 crore.