The BSE benchmark, the Sensex was trading 0.42% or 94.83 points higher at Rs 22,438.28, while the NSE's Nifty was trading 0.33% or 22.30 points higher at 6,717.35 points at 10.45 am IST.
Experts believe earnings would be driven by the fact rupee is down 14% YoY. "4QFY14 earnings for Sensex will grow 13% YoY, continuing the trend of last couple of quarters. Weak currency will be the key driver of YoY earnings growth in 4Q. With this, we expect FY14 Sensex EPS to grow 12% to INR1,331, a 1% upgrade from INR1,317 estimated in our 3QFY14 Preview and 3% upgrade from lows," Motilal Oswal Financial Services said in a report. "In 4QFY14, INR appreciated considerably against dollar from the lows, following a period of sharp depreciation (2QFY14) and relative stability (3QFY14). Even though INR is at its 8 month high, on a YoY basis INR is down 14%, aiding growth of exporters," the brokerage added.
Among sectoral indices, the BSE Metal (1.65%), BSE Realty (1.42%) and BSE Healthcare (2.04%) were the major gainers. Among individual stocks, Sun Pharma (6.71%), Hindalco (4.23%) and Tata Motors (2.41%) were the major gainers on the 30-share Sensex.
The Sun Pharma shares extended gains after announcing plans to buy Ranbaxy in a $3.2 billion all-stock deal. Hindalco shares gained after global aluminium player Alcoa said the aluminium demand is likely to see a 7% growth in 2014.
Most Asian indices were trading in the green. The Hang Seng (0.97%), Kospi (0.08%), Straits Times (0.12%), Taiwan Taiex (0.49%) and Shanghai Composite (0.17%) were trading higher.