Indian shares rose on Wednesday with Tata Motors Ltd leading the gains after the automaker reported a better-than-expected quarterly profit. However, gains were capped as investor sentiment remained tepid after India on Tuesday said it attacked Pakistani army posts in Kashmir, while a slip in Asian shares after a Moody’s downgrade on its sovereign credit rating on China also hurt risk appetite.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2 percent. “Sentiment is slightly impacted due to the fall in Asian shares,” said Dipen Shah, senior vice president and head of private client group research at Kotak Securities.
“Broadly, the Indian market is gaining on optimism from strong quarterly results, especially from Tata Motors,” Shah added. The broader NSE index was up 0.3 percent at 9412.6 as of 0611 GMT, while the benchmark BSE index rose 0.40 percent to 30,486.27.
Tata Motors shares climbed as much as 5.1 percent after the company reported March-quarter profit that beat analysts’ estimates on Tuesday. Financial stocks including Housing Development Finance Corp Ltd and Yes Bank Ltd were among the top percentage contributors on the NSE index.
Housing Development Finance Corp Ltd rose as much two percent while Yes Bank gained as much as 2.9 percent.Shares of Voltas Ltd jumped as much as 10 percent to a record high, after the air conditioning and engineering company on Tuesday posted a better-than-expected jump in quarterly profit. Jubilant Life Sciences Ltd gained as much as 12.8 percent after the company reported strong quarterly results on Tuesday.