The Hindu Business Line file photo
Chennai, India (BBN) - The NSE index Nifty was trading above the psychological 9,200-mark and the BSE benchmark Sensex up by nearly 230 points as the corporate results season kicked in with banks rallying on expectations of stronger earnings.
The earnings season got off to a weak start with IT major Infosys Ltd issuing a lower-than-expected revenue guidance last week, but analysts still see signs of positive results this quarte, reports The Hindu Business Line.
Investors appeared optimistic ahead of quarterly earnings of some key companies, including IT major TCS which is scheduled to release its results later in the day.
At 11.55am, the 30-share BSE index Sensex was up 225.25 points or 0.77 per cent at 29,638.91 and the 50-share NSE index Nifty was up 66.1 points or 0.72 per cent at 9,205.40.
Among BSE sectoral indices, power index gained the most by 1.6 per cent, followed by infrastructure 1.42 per cent, metal 1.3 per cent and banking 1.24 per cent.
Top five Sensex gainers were Adani Ports (+3.72%), ICICI Bank (+2.98%), NTPC (+2.14%), GAIL (+1.83%) and State Bank of India (+1.69%), while the major losers were Coal India (-1.43%), Bharti Airtel (-0.75%), Sun Pharma (-0.4%), M&M (-0.24%) and Bajaj Auto (-0.05%).
“The start was not good, led by IT, but some signs are coming in that this quarter is going to be good,” said Vinod Nair, head of research at Geojit Financial Services.
“Expectations about quarterly results have started building up. Investors are expecting some improvement in terms of growth rates during Q4 compared to Q3,” said Dipen Shah, senior vice president and head of private client group research, Kotak Securities. He added that PSU banks are expected to perform better.
The Nifty PSU bank index gained up to 2.47 per cent, touching its highest since August 2015.
Financials contributed to the majority of gains on the NSE index with ICICI Bank Ltd and HDFC Bank Ltd leading, up 3.13 per cent and 1.27 per cent, respectively.
US stocks bounced back on Monday after the S&P 500 closed the previous session at a two-month low, in a broad rally led by recently beaten-down bank and technology shares.
At the closing bell on Monday, the Dow Jones Industrial Average rose 183.67 points, or 0.9 per cent, to 20,636.92, the S&P 500 gained 20.06 points, or 0.86 per cent, to 2,349.01 and the Nasdaq Composite added 51.64 points, or 0.89 per cent, to 5,856.79.
BBN/SS/ANS