Indian shares advanced on Monday as strong earnings from Tata Motors Ltd and DLF Ltd added to the optimism over cooling domestic retail inflation.
The Nifty 50 was up 0.38% at 18,382.90 as of 10:22 a.m. IST, while the S&P BSE Sensex rose 0.43% to 62,296.54. Eleven of the 13 major sectoral indexes advanced, with auto and realty stocks rising nearly 1% and 2.5%, respectively. Tata Motors , which gained 4%, powered the rise in the auto index, while DLF , which rose as much as 4.89% to a fresh 52-week high, pushed up the realty index. Both companies had reported a surge in March-quarter profit.
"Expect further consolidation due to mixed signals from the global front," said Ajit Mishra, vice president - technical research at Religare Broking Ltd.
"There will be no shortage of trading opportunities, thanks to the ongoing earnings season."
India's retail inflation data eased to an 18-month low of 4.7% in April, well below the central bank's upper tolerance limit of 6% for the second consecutive month. India's wholesale price index inflation for April, due on Monday, is also expected to ease on base effects. Economists now expect India's central bank to maintain a "pause" on rate hikes, following the slide in inflation.
Global equities, on the other hand, remained subdued, after a survey showed U.S. consumer sentiment fell to a six-month low in May on fears of a potential recession. Caution ahead of key macro data and rate decision from China also weighed on sentiment. Among individual stocks, drug maker Cipla Ltd lost more than 4%, the most among Nifty 50 stocks, after reporting a smaller-than-expected profit. Meanwhile Avenue Supermarts Ltd , which operates the DMart chain of retail stores, fell as much as 4.65% after reporting a drop in profit margins. (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza and Janane Venkatraman)
