BENGALURU Indian shares extended gains on Wednesday, driven by Axis Bank and metals stocks, as a series of encouraging earnings reports spurred optimism about a pick up in business activity.
The gains were broad-based, with 10 out of 11 major sectoral indexes trading higher after mid-sized companies including Sun Pharma Advanced Research and agri-chemcials producer PI Industries reported upbeat June-quarter earnings on Tuesday after market close.
The NSE Nifty 50 index climbed 0.83% to 11,187.40 by 0530 GMT on Wednesday. The S&P BSE Sensex was 0.81% higher at 37,992.44.
“Wherever you see a company performing well, we are seeing a good amount of rush coming in. Liquidity is the main factor driving the markets,” said Saurabh Jain, assistant vice president research at SMC Global Securities in New Delhi.
“Investors are snapping up stocks in which they believe earnings will be good without minding their higher valuations.”
Indian shares are the second-most expensive equities in the Asia-Pacific region, with a price-to-earnings ratio of 20.36.
Shares in PI Industries gained 3.8% after a jump in earnings, while Sun Pharma Advanced Research jumped 8% on swinging to a profit from a year-ago loss.
Axis Bank Ltd climbed 3.2% as the lender launched a $1.3 billion share sale.
The Nifty Metals index rose 2%, lifting all its 15 constituents. Hindalco rose 3.5% and was the top gainer on the Nifty 50.
Markets also await the outcome of a central bank monetary policy meeting on Thursday, which could also include fresh rules on a moratorium on loan repayments to banks, triggered by the COVID-19 crisis.
Other Asian markets were slightly higher on Wednesday.
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