Indian shared edged 0.14 percent higher after a choppy trading session on Monday, as hopes of stability in Greece improved global risk appetite and offset weak corporate earnings at home. The main 30-share BSE index closed 24.15 points up at 17,772.84, with almost two-thirds of its components gaining.
"Choppiness is a sign of nervousness. This is a thumb rule. We are at a level which is difficult to sustain at a fundamental basis," said Arun Kejriwal, an analyst at research firm KRIS.
Foreign funds have pumped in about $4 billion into Indian shares this year, in sharp contrast to net outflows of about $500 million in 2011, data from the market regulator showed. "A very strong liquidity momentum is going on... If liquidity is the order of the day, then fundamentals tend to take a back seat," said Jagannadham Thunuguntla, head of research at SMC Global Securities in New Delhi.
Top lender State Bank of India recovered some of its losses to end 2.2 percent lower, weighing on the benchmark the most. The bank beat market expectations with a 15 percent rise in third-quarter net profit as interest income rose. However, net non-performing assets rose.
ICICI Bank, the biggest private sector lender ended almost flat, while smaller rival HDFC Bank added 0.86 percent. Shares in Wipro Ltd, India's No. 3 export-driven software services firm, slumped 2.9 percent to become the biggest percentage losers on the main index after Goldman Sachs downgraded it to "sell" from "neutral." The bank said the company may continue to lag its large-cap peers in terms of revenues and earnings per share.
Energy conglomerate Reliance Industries, India's biggest listed firm and which contributes more than a tenth to the benchmark, rose 0.71 percent to 849.25 rupees. On Sunday, the company said it signed a pact with France's Dassault Aviation for partnering in the Indian defence and homeland security sector.
DLF Ltd, the country's largest listed developer, ended 0.24 percent lower, after dropping as much as 5.4 percent, as its quarterly profit fell 45 percent and the company warned of rising costs in upcoming quarters. Bigger rival Bharti Airtel fell 0.64 percent, while Idea dropped 1.4 percent.
The 50-share NSE index closed 0.16 percent up at 5,390.20. In the broader market, there were about equal number of losers for every gainer, with 751.9 million shares changing hands.
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