By Bharath Rajeswaran
(Reuters) -Indian shares edged higher on Thursday, supported by strong quarterly results from State Bank of India, Mahindra & Mahindra and Britannia Industries, while the addition of four local companies to a key MSCI index further lifted sentiment.
The Nifty 50 rose 0.13% to 25,633 and the BSE Sensex gained 0.27% to 83,680.25 as of 10:07 a.m. IST.
Nine of the 16 major sectors advanced, while small-and mid-cap indexes and slipped 0.4% and 0.2%, respectively.
Auto maker Mahindra & Mahindra gained 1.6% adding to the 1% rise on Tuesday, while biscuit maker Britannia Industries jumped 3.4% after posting a rise in second-quarter profit.
State Bank of India rose 1% after several brokerages raised full-year earnings estimates following its second-quarter results, citing strong loan growth and stable asset quality.
Paytm gained 3.9% after analysts called its core quarterly performance solid. The stock was also among four added to the MSCI Global Standard Index in the November reshuffle, a move expected to draw more foreign inflows.
“Markets are drawing strength from an improving earnings outlook driven by recent tax cuts,” said Shankar Raja, senior vice president at PL Capital.
“If third-quarter results confirm the pickup in corporate profitability and India–U.S. trade jitters subside, record highs are well within reach. Until then, some consolidation is likely, but the broader trend remains firmly positive.”
Among stocks, Hindalco slid 6.2% after its U.S. arm Novelis raised capex guidance by 20% to $5 billion for expansion.
“Stock risks remain tilted to the downside given Novelis’ margin and cash-flow outlook,” said Ashish Jain of Macquarie.
Grasim Industries fell 4.8% after Rakshit Hargave, CEO of its paints unit Birla Opus, resigned to join Britannia Industries.
Hargave’s exit could weigh on near-term sentiment, analysts at Jefferies said. The country’s top paints maker and Grasim’s competitor Asian Paints jumped 5.6% and was the top Nifty 50 gainer by percentage.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Nivedita Bhattacharjee)
