BENGALURU: Ahead of corporate earnings for the March quarter, Indian equities increased for the seventh straight session on Tuesday, supported by financials companies on positive quarterly updates.
The S&P BSE Sensex increased 0.52% to 60,157.72 and the Nifty 50 closed 0.56% higher at 17,722.30. For both indices, this is their longest winning streak in more than four months.
The gains were led by the high-weighted financials, which rose over 1%, and were seen in ten out of the thirteen key sectoral indices.
The shares of the state-owned lender Bank of Baroda Ltd. increased by over 3%, helping the bank index to increase by 1.3% and the public sector bank index to increase by 1.61%.
As the lender announced a 19% YoY increase in total advances for the March quarter, several international brokerages renewed their “buy” recommendation on it.
On expectations of inflows from a potential increase in MSCI weighting, Kotak Mahindra Bank increased by roughly 5%.
After taking over the entire sales and marketing operations of British motorcycle manufacturer Triumph Bikes in India, Bajaj Auto increased by about 3% to a 21-month high.
Analysts predict that the near-term market catalyst will be corporate results, which are set to begin on Tuesday.
Tuesday will see the release of Q4 earnings from the casino gambling company Delta Corp Ltd, and Wednesday will see the release of Q4 profits from the leading IT company Tata Consultancy Services Ltd.
According to a recent statement by J.P. Morgan, TCS and Infosys Ltd. are most exposed to regional banks in the United States that are experiencing financial instability.
With a loss of 1.26%, the IT index was the worst performing industry.
According to Siddhatha Khemka, head of retail research at Motilal Oswal Financial Services, “the undertone of the market remains optimistic on expectation of robust Q4 results, ahead of crucial macro data.”
According to a Reuters survey of economists, consumer inflation in India likely decreased in March to 5.80%, falling below the RBI’s upper tolerance ceiling for the first time since 2023. Data must be submitted by Wednesday.