Indian shares edged up marginally on Thursday, led by buying in bluechips such as Infosys and Hindustan Unilever, while caution prevailed ahead of the release of economic growth data on Friday and the central bank's policy review due on December 2. India economic growth probably slowed to 5.1 percent in the July-September quarter from a year ago, but economists polled by Reuters doubted whether that would be enough to persuade the central bank to cut interest rates just yet.
The expiry of the monthly derivatives contract on Thursday added to the lacklustre mood, while overseas investors continued their buying spree for the fifth straight session. They bought $29.32 million worth stocks on Wednesday. "Markets are expected to remain positive as the fundamentals are strong. Growth is likely to improve in the coming quarter. The choice before RBI is very limited and they will have to give some kind of boost to the economy," said Deven Choksey, managing director, KR Choksey Securities.
The benchmark BSE index closed 0.19 percent higher at 28,438.91 while the broader NSE index ended up 0.22 percent at 8,494.20. Blue chip stocks gained. Infosys Ltd closed 1.5 percent higher, while Hindustan Unilever Ltd finished up 2.6 percent. Shares in Bharat Heavy Electricals Ltd gained 4.8 percent, rising for the fifth straight session on improved order outlook, traders said.
State-run oil marketing companies rose as crude oil prices fell to a four-year low. Indian Oil Corporation ended 1.8 percent higher while Hindustan Petroleum Corp Ltd gained 3.3 percent. Airline stocks also rallied on hopes of a cut in jet fuel prices after the steep fall in global crude prices. Jet Airways closed 4.96 percent higher while SpiceJet gained 1.1 percent.
Among other shares that rose, railway-related stocks closed the day higher on reports the Indian railway ministry had called for an investor meet on December 5. Shares in Texmaco Rail and Engineering gained 2.2 percent while Kalindee Rail Nirman Engineers ended 3.4 percent higher. Among the losers, Bharti Airtel closed 2.02 percent lower, falling for the second straight session, after Nigeria's central bank devalued the country's currency naira by 8 percent and raised interest rates sharply on Tuesday.