Mumbai: Indian shares were stronger on Wednesday after a choppy opening, with software companies up on hopes of an improving business environment, with overall momentum was capped by caution with the index above 17,000 points.
Sector leader Tata Consultancy was up 1.9% and rivals Infosys and Wipro climbed 1.8% and 2.1% respectively, helped by a view that conditions in major economies were picking up.
At 12:41pm, the 30-share BSE Index was up 0.2% at 17062.98, with 16 components gaining. The 50-share NSE index was up 0.3% at 5071.05.
The index has risen more than 11% from a 2-month low hit on 3 November, and is edging back towards 1-year highs hit last month.
“You can’t make a clear case for market direction at high valuations like these,” said Neeraj Dewan, director of Quantum Securities.
“There is a tussle going on as people are booking profits and at the same time there is also more liquidity coming in,” he added.
Energy giant Reliance Industries was down 0.7% at Rs2,119, extending Tuesday’s fall after chairman Mukesh Ambani did not unveil any specific major acquisition or project plans at the annual shareholders meeting. “There is always speculation about big takeaways from the Reliance AGM. But nothing big came up and stock is coming off,” Dewan said.
Banks edged lower. The sector index was down 0.3%, but was still up more than 10% this month.
Top lender State Bank of India fell 0.4% to Rs2,340.80 and ICICI Bank was down 0.3% at Rs915.80.
In the broader market, gainers were more than double the number of losers in a volume of 87 million shares.