Mumbai, India (BBN) – Indian domestic shares ended higher for a second consecutive session on Wednesday as strong foreign investments into the country continued, although broader gains were capped ahead of the earnings season.
Foreign investors have bought a net $6.91 billion in debt and equities so far this month on hopes of an improving economy and optimism over Prime Minister Narendra Modi’s reform process after his victory in the key northern state of Uttar Pradesh, reports the Hindu business Line.
But whether the gains can sustain will likely hinge on earnings results, due to start in April, and the global risk environment, according to analysts.
“There are two factors that continue to keep the markets up. Both domestic and FII flows have been extremely strong.
If the flows continue to be there at that extent, markets tend to look up,” said R Sreesankar, co-head, Institutional Equities at Prabhudas Lilladher Pvt. Ltd.
The 30-share BSE index Sensex was up 121.91 points or 0.41 per cent at 29,531.43 and the 50-share NSE index Nifty was up 43 points or 0.47 per cent at 9,143.80.
Among BSE sectoral indices, consumer durables index gained the most by 1.29 per cent, followed by infrastructure 0.87 per cent, banking 0.78 per cent and capital goods 0.77.
On the other hand, realty index was down 0.57 per cent, healthcare 0.51 per cent, auto 0.49 per cent and oil & gas 0.01 per cent.
Top five Sensex gainers were State Bank of India (+1.98 per cent), ICICI Bank (+1.81 per cent), Bharti Airtel (+1.25 per cent), Coal India (+1.07 per cent) and HDFC (+1.00 per cent), while the major losers were Hero MotoCorp (-3.15 per cent), Sun Pharma (-1.42 per cent), Tata Motors (-0.7 per cent), M&M (-0.66 per cent) and Maruti (-0.58 per cent).
The Nifty Finance index gained for the fourth session in five amid hopes the sector could benefit from an improving economy.
Index heavyweight State Bank of India gained as much as 2.18 per cent, while Axis Bank rose as much as 2 percent.
The Nifty Bank index hit a record high in morning trade, with Bank of India gaining 1.84 per cent and Canara Bank trading about 1.7 per cent higher.
Bharti Infratel rose as much as 7 per cent to be the top gainer on the NSE index after promoter Bharti Airtel completed a transfer of 11.32 per cent stake in its telecom tower unit to Nettle Infra Investments Ltd
Asian shares inched ahead, while the dollar and commodities held gains as investors shook off disappointment about US President Donald Trump’s failed healthcare Bill and focussed on an improving outlook for global growth.
The good cheer did not extend to the pound which was on the skids as the British government sent a letter to Brussels formally starting the country’s exit from the European Union.