Indian shares snap losing run as investors assess earnings

Indian shares snapped a four-session falling streak on Monday, aided by a post-earnings rise in key benchmark constituents such as Dr Reddy’s, JSW Steel and Kotak Mahindra Bank.

However, inflation concerns driven by Brent crude futures trading around $115 a barrel kept a lid on gains. Investors awaited the Federal Reserve policy decision on Wednesday, when the central bank is expected to hold rates.

India’s benchmark Nifty 50 rose 0.68% to 22,753.2, and the Sensex added 0.66% to 73,606.75. The indexes had slipped about 0.9% earlier in the session.

Beyond crude, September-quarter earnings will shape market direction as investors gauge results, management commentary and guidance for signs of resilience, said Ponmudi R, CEO of Enrich Money.

“While the recovery on the session points to selective buying interest, its sustainability will depend on whether broader participation improves and external headwinds begin to ease.”

A report in the Indian Express newspaper about a possible cut in the 12.5% long-term capital gains tax also lifted sentiment, but investors would need concrete action for sustained gains, two traders said.

Fifteen of the 16 major sectors rose. The broader small-caps and mid-caps added 1.4% and 1.2%, respectively.

Metals gained 2.2% after losing 5.4% in the previous four sessions. JSW Steel added 6.3% after posting a threefold jump in quarterly profit, aided by record volumes and improved utilisation.

The pharma index jumped 1.8%. Dr Reddy’s Laboratories gained 6.6% after beating profit estimates, as domestic demand cushioned weakness in its crucial US market.

The oil and gas index gained 1.4% after losing 2.1% over five sessions.

Stock-exchange operator BSE jumped about 4% after Motilal Oswal upgraded the stock to “buy” from “neutral”, citing potential benefits from a partial reversal of the closing auction session.

Private lender Kotak Mahindra Bank gained 2.4% after a quarterly profit beat on robust loan demand, while Shriram Finance lost 4.6% after cutting its annual loan-growth forecast and flagging higher credit costs.