By Bharath Rajeswaran and Ashna Teresa Britto
BENGALURU (Reuters) -Indian shares advanced on Wednesday, led by financial services and tracking their Asian peers, with an earnings-led rise in real estate stocks also lending support.
The NSE Nifty 50 index rose 0.30% at 21,997.50, while the S&P BSE Sensex was up 0.28% at 72,389.03, as of 10:28 a.m IST.
The broader and more domestically-focussed small- and mid-caps rose 1% and 0.6% each, outperforming the benchmarks.
“The outlook remains positive for Indian markets.
The focus on fiscal prudence in interim budget, stable quarterly results and sustained inflows from domestic investors have all been supportive,” said Neeraj Dewan, director at Quantum Securities.
“Volatility will remain high, even if the overall sentiment is positive, as investors would be tempted to take some profit every now and then, due to stretched valuations,” Dewan added.
The Nifty volatility index hovered near a 10-month high of 16.58, a level last seen ahead of the budget on Jan.
30.
Asian markets gained after China announced measures to curb short-selling and expand stock-buying by state-owned funds to protect its markets. [MKTS/GLOB]
Twelve of the 13 major Nifty sectors advanced.
The highest weighted sector – financial services gained 0.8%.
HDFC Life Insurance, ICICI Lombard rose 3% and 2%, respectively, extending gains from the previous session after a government panel recommended tax cuts on health and term insurance products.
Axis Bank and Max Financial Services rose 2% and 5% each after India’s insurance regulator approved capital infusion of 16.12 billion rupees ($194.2 million) by the private bank into Max Life Insurance.
Public sector banks jumped 2.4%.
“There is valuation comfort and earnings stability in very few segments in this market, like state-owned lenders,” said Anita Gandhi, founder and head of institution at Arihant Capital.
Realty stocks gained 2.30%, with Godrej Properties up 2% after posting a rise in third-quarter profit on sturdy residential demand.
($1 = 83.0020 Indian rupees)
(Reporting by Bharath Rajeswaran and Ashna Teresa Britto in Bengaluru; Editing by Savio D’Souza and Varun H K)
