* BSE index gains 0.22 pct; NSE up 0.16 pct
* Banks, interest rate-sensitive stocks gain
* IT stocks fall on profit-taking
MUMBAI, Jan 21 Indian shares edged up on Tuesday
as interest rate-sensitive companies such as Tata Motors and
ICICI Bank extended recent gains amid rising expectations that
the central bank will keep monetary policy unchanged next week.
Engineering giant Larsen & Toubro Ltd rose ahead
of its earnings on Wednesday as investors remain focused on
results, while Hindustan Zinc Ltd gained after the
government approved a sale of its stake in the company.
However, broader gains were limited as investors booked
profits in recently rallying software services exporters such as
Tata Consultancy Services Ltd.
"Markets are likely to trade rangebound and stock-specific
with a positive bias. Inflation is under control and we expect
positive steps from the central bank," said Suresh Parmar, head,
institutional equities at KJMC Capital Markets.
"Banking stocks will continue to do well while other
interest-specific sectors such as auto and real estate would
also see some buying interest ahead of the policy."
The benchmark BSE index closed up 0.22 percent at
21,251.12, while the broader NSE index ended higher 0.16
percent at 6,313.80.
Overseas investors bought Indian shares worth 3.85 billion
rupees on Monday, provisional exchange data showed. Foreign
institutional investors have been buyers for eight consecutive
sessions to the tune of 24.06 billion rupees.
Banks were among the leading gainers, with State Bank of
India up 1.08 percent and ICICI Bank ending
higher 3.26 percent.
The Reserve Bank of India is due to hold its policy review
on Jan. 28 amid strong expectations that it will keep interest
rates on hold for a second consecutive month after inflation
eased lat month. The RBI had raised interest rates by a total of
50 basis points over September and October.
Shares in Hindustan Zinc Ltd rose 1.43 percent
after the government approved on Monday the sale of its shares
in the metal company. The government holds a 29.5 percent stake
in the company.
However, software services exporters fell with Tata
Consultancy Services down 2.48 percent after gaining
5.3 percent on Monday, its biggest single-day gain since April
2012, as investors took profits.
Asian Paints fell 2.19 percent after the company's
net profit for the October-December quarter fell 1.75 percent,
disappointing some investors..
For additional stocks on the move double click
FACTORS TO WATCH
* Euro falls versus dollar after German ZEW
* Oil rises over $107, IEA says demand to outstrip supply
* European shares hit 5-1/2 yr high, dollar gains
* Foreign institutional investor flows
* For closing rates of Indian ADRs
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia........ Japan....... S.Korea...
S.E. Asia....... Hong Kong... Taiwan....
Australia/NZ.... India....... China.....
Wall Street .... Gold ....... Currency..
Eurostocks..... Oil ........ JP bonds...
ADR Report ..... LME metals. US bonds..
Stocks News US.. Stocks News Europe
DIARIES & DATA:
Indian Data Watch Asia earnings diary
U.S. earnings diary European diary
Indian diary Wall Street Week Ahead
Eurostocks Week Ahead
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(Reporting by Indulal PM)