Sensex edges higher in cautious trade; elections eyed - Livemint

Investors picked up some of the battered stocks but also continued to book profits ahead of crucial election results next week. Photo: Hemant Mishra/Mint

Mumbai: Indian shares edged up on Thursday, recovering slightly from the one-and-a-half-month closing low hit in the prior session, as investors picked up some of the battered stocks but also continued to book profits ahead of crucial election results next week.

India’s NSE index, CNX Nifty, is down 3.1% since hitting a record high on 25 April, as investors have reduced some of their positions ahead of the conclusion of elections.

Overseas investors sold index futures worth Rs.512 crore, turning sellers for the six out of the last seven sessions.

Still, markets are overwhelmingly pricing in a victory by the opposition Bharatiya Janata Party (BJP), which is widely seen in markets as being more investor friendly.

“Market is preparing for the election outcome. We can see selective profit-taking and selective position building. Market continues to trade cautious and we will see a definitive directional move after the election outcome,” said Suresh Parmar, head of institutional equities at KJMC Capital Markets.

The benchmark S&P BSE Sensex gained 0.1%, or 20.14 points, to 22,344.04, while the broader NSE index ended 0.11%, or 7.30 points, higher at 6,659.85.

Shares got some support from Asian markets, which gained on dovish comments by the US Federal Reserve chair Janet Yellen and upbeat Chinese trade data that suggested some signs of stabilization in the world’s second-largest economy.

Some recently battered shares rose, with Wipro Ltd gaining 1.04% to Rs.510.75, after losing 11.6% since 16 April till Wednesday.

Metal stocks gained, with Hindalco Industries Ltd ending 0.78% higher at Rs.136.45 and Tata Steel Ltd gaining 0.58% to Rs.402.25 on hopes for revival in Chinese demand.

However, investors also booked profits in other blue chips, with Reliance Industries Ltd (RIL ) falling 0.11% to Rs.959.65, after gaining 3.5% in the previous three sessions.

Meanwhile, Bharti Airtel Ltd ended 0.98% lower at Rs.307.90. The stock fell for the eighth straight session after its earnings fell short of expectations of some investors.

Housing Development and Finance Corp Ltd (HDFC) fell 0.45% to Rs.849.25, falling for the fourth straight session after its earnings disappointed some investors. The stock had declined 6.4% in the last three sessions. Reuters