Indian shares rose for a third consecutive session on Monday as Reliance Industries Ltd surged after posting a stronger-than-expected quarterly profit, while sentiment was supported after Chinese economic growth data eased fears of a hard landing. Reliance Industries jumped 5.6 percent after saying on Friday that its July-September consolidated net profit rose more than expected. Investors were also comforted after China's economy grew slightly better than forecasts in the July-September quarter.
The broader NSE index rose 0.45 percent to end at 8,275.05, bringing its overall gain in the three sessions to Monday to 2.1 percent. The benchmark BSE index rose 0.55 percent to end at 27,364.92. It has advanced 2.2 percent since Thursday. At the same time, investors were comforted after China's economy grew slightly better than forecasts in the July-September quarter, even as it dipped below 7 percent for the first time since the global financial crisis.
Still, traders worried the gains might not sustain. October contracts for India's NSE index futures were trading not far from the 50-share spot index, indicating little potential upside. "Selective companies, especially leaders in sectors, would show better results than others as the economy improves," said Deven Choksey, managing director at K. R. Choksey Securities.
"Derivatives are also adding to the pressure." Meanwhile, Infosys Ltd rose 1.4 percent, recovering from a 6.2 percent slump last week after the company cut its dollar revenue guidance. But recent outperformers fell, with Tata Motors down 1.4 percent after surging 29.7 percent in the previous two weeks.