By Bharath Rajeswaran and Vivek Kumar M
(Reuters) -India’s benchmark shares rose on Thursday, driven by gains in private banks after Axis Bank’s second-quarter results showed improved asset quality and better-than-expected net interest margins.
The Nifty 50 rose 0.48% to 25,445.60 and the BSE Sensex added 0.51% to 83,025.08 as of 10:23 a.m. IST.
The Nifty and Sensex are trading about 3% and 3.5% below their record high levels hit on September 2024.
Twelve of the 16 major sector logged gains. Private banks climbed 0.8%, led by a 3% jump in Axis Bank.
Although the private lender posted a larger-than-expected drop in the September-quarter profit, several analysts pointed to improved operating performance and asset quality as positive factors.
The broader small-caps and mid-caps gained 0.4% and 0.3%, respectively.
The two highest-weighted stocks – HDFC Bank and ICICI Bank – advanced 0.6% each. The third-heaviest stock, Reliance Industries, added 0.3%.
The three companies will report their quarterly results later in the week.
“The demand outlook for the rest of the financial year has brightened after the recent tax cuts, and could spark a virtuous cycle of earnings growth, lifting overall sentiment,” said Amnish Aggarwal, director research, institutional equities at PL Capital.
Information technology stocks lost 0.4%. Infosys, the country’s No. 2 software services provider, declined 0.7% ahead of its quarterly results due post market hours on Thursday.
Among individual stocks, Mangalore Refinery and Petrochemicals jumped 2.4% after posting quarterly profit from a loss a year ago.
Realty developer Oberoi Realty jumped 4.1% after reporting a 29% rise in the second-quarter profit.
Packaging solutions provider Huhtamaki India surged 12% after logging a three-fold increase in quarterly profit.
Westlife Foodworld gained 2% after it maintained a status quo on royalty rate payable to McDonald’s, which Investec termed as a positive for its operating profit and free cash flow.
($1 = 87.7440 Indian rupees)
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sumana Nandy and Janane Venkatraman)
