Indian benchmark equity indices rose for the third consecutive trading session on Tuesday to close at a five-month-high as investor sentiment received a boost amid a firm global trend and expectations of strong earnings numbers.
The Sensex gained 304.90 points, or 0.85%, to close at 36,239.62 as 21 of the 30 constituents ended in the green. The gainers pack was led by Reliance Industries, Yes Bank, Coal India, Bajaj Auto, Tata Steel and Wipro, all gaining in the range of 2-4% each. Incidentally, the last three trading sessions saw the Sensex gaining more than 650 points.
Meanwhile, the broader Nifty rose 94.35 points, or 0.87%, to close at 10,947.25. The index is now only 183 points away from an all-time high of 11,130 it touched early this year in January.
The overall market breadth was also strong with nearly 1,700 stocks gaining ground on the BSE as against 962 declines. Both, BSE Midcap and BSE Smallcap index gained more than 1% each on Tuesday.
Corporate earnings
Market participants are of the view that the sentiments are bullish on expectations of a revival in corporate earnings that have remained sluggish in the last few quarters. “... the overall picture is looking brighter, even as macros have deteriorated amid a volatile global trade environment,” said the latest earnings preview report by Motilal Oswal Financial Services.
“The confidence on earnings recovery is higher today than any time in the recent past. The story continues to be a case of improving micros and challenging macros (crude oil price inflation, currency, rising bond yields),” the report added.
IndusInd Bank, which announced its results on Tuesday, reported a rise of 24% in net profit for the quarter ended June 30. A rise in advances and core interest income led to the bank registering a profit of ₹1,036 crore, as against ₹837 crore in the corresponding period last year.
