Robust foreign fund investments and strong world equities helped Indian shares rise for a third straight session and close 0.7 percent higher on Thursday, with Reliance Industries leading the gains. Energy major Reliance rose 1.4 percent ahead of its quarterly earnings announcement, while top outsourcer Tata Consultancy Services (TCS) dropped 2.8 percent even as it reported better-than-expected earnings.
After market hours, Reliance, the country's most valuable listed company, reported record quarterly net profit, but lagged analysts' estimates as flat production from its gas blocks and lower than expected refining margins weighed on results. The market chose to largely shrug off TCS's forecast-beating 23-percent rise in quarterly net profit, on rising demand for outsourcing services from western clients.
Shares in TCS, India's largest software services exporter, slid after the firm said its profit margins dropped 153 basis points from a year earlier, and as traders opted to book gains after the steep 4.6 percent rise in the previous session. The 30-share BSE index ended 0.67 percent or 131.25 points higher at 19,602.23, with 21 of its components closing in the green. It logged a 1.1 percent gain on the holiday-shortened week. Indian markets are shut on Friday for a public holiday. The 50-share NSE index gained 0.6 percent to 5,884.70 points. Optimism over India's rapid economic growth has prompted foreign funds to plumb for Indian shares since mid-March, after having sold heavily in the first two months of 2011.
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