Indian shares surged on Tuesday with the Sensex breaching 29,000-mark and the Nifty reclaiming 9,200-level even though investors were cautious ahead of the earnings season and March inflation data.
The Nifty ended up 0.6% at 9,237, while the Sensex gained 213 points, or 0.7%, to close at 29,788.35.
Earnings are shaping as critical for investors to ascertain whether the double-digit rise in the shares’ value can be sustained. The broader NSE index has risen about 12.7% so far this year, touching a record high of 9,273.90 last week.
Meanwhile, analysts expect shares to trade in a narrow range. Infosys Ltd, the country’s second-largest software services company, is due to report results on Thursday, unofficially kicking off the reporting season for major companies.
The Nifty IT index was 0.64% higher, recovering from a loss of 1.4% in the previous session. Infosys Ltd, which had shed nearly 7% this month as of Monday’s close, gained as much as 1.9%.
Financial stocks drove the gains on the NSE index, contributing about 17 index points. The Nifty Bank index had gained about 18.4% this year as of Monday’s close.
SpiceJet Ltd rose as much as 2.9% after the country’s capital markets regulator settled a case against chairman Ajay Singh over whether he violated disclosure rules when he bought shares from promoters in February 2015.
India’s Supreme Court set aside an order by the Appellate Tribunal For Electricity allowing compensatory tariff to Tata Power Ltd and Adani Power Ltd, sending their shares down 12.5% and 4.5% respectively. (With inputs from Reuters)