India shares advance in line with regional markets; software stocks rebound
MUMBAI (NewsRise) -- Indian shares rose Thursday, aided by gains in regional markets and a recovery in index heavyweights including software exporters' stocks.
The benchmark BSE Sensex gained 0.3%, or 85.82 points, to 29,422.39, while the broader NSE Nifty 50 ended 0.4% higher, or 32.90 points, at 9,136.40. The indices had declined 2.1% and 1.7% between April 6 and April 19 after hitting a record high on April 5.
"The movement in large cap stocks suggests a case of value buying, especially across IT stocks. Also, the market has expectations for decent quarterly earnings," said Akash Jain, vice president of research at Ajcon Global. "It's a bull market currently, though we may see a 300-point fall in the Nifty if the fourth-quarter earnings come in below expectations or the monsoon rains disappoint."
HDFC Bank, India's biggest lender by market value, ended 1% higher at 1,461.95 rupees ahead of its fourth-quarter earnings on Friday. Mortgage-lender Housing Development Finance Corp. advanced 1.8% to 1,516.95 rupees, closing at the highest level since Apr. 3.
Software exporter Infosys rose 1% to 927.65 rupees, while larger rival Tata Consultancy Services ended 1.2% higher at 2,328.35 rupees as the stocks witnessed demand after recent declines following quarterly earnings.
Infosys had slumped more than 5%, while Tata Consultancy lost 3.9% in the previous four sessions.
Yes Bank, a constituent of the Nifty index, fell 3.8% to 1,545.10 rupees. After market hours on Wednesday, the private lender reported a 30% on-year rise in net profit, but announced a 67% jump in provisions and a spike in gross bad loans ratio.
Yes Bank earnings weighed on rivals. Larger private sector lenders Axis Bank and ICICI Bank ended down 2.3% and 2.9% at 487.95 rupees and 272.80 rupees.
Reliance Industries, India's biggest private company be revenue, closed little changed at 1,369.40 rupees. Late Wednesday, it announced the completion of an Ethane project in western India in less than three years.
Hindustan Zinc, in which parent Vedanta owns about 65%, gained 4.3% to 282.90 rupees after reporting a better-than-expected 42.4% on-year increase in January-March net profit.
Elsewhere in Asia, China's Shanghai Composite index rose 0.04% and South Korea's Kospi index gained 0.5%. Hong Kong's Hang Seng added 1% while Japan's Nikkei 225 index ended little changed.
--Dhanya Ann Thoppil