Indian stocks gain amid IT boost, hit record high in session

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People walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, November 4, 2020. REUTERS/Francis Mascarenhas

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BENGALURU, Oct 19 (Reuters) - Indian shares edged up on Tuesday, with information technology shares driving most of the gains amid expectations of strong corporate earnings for the September quarter.

The NSE Nifty 50 index (.NSEI) was up 0.4% at 18,542, while the S&P BSE Sensex (.BSESN) rose 0.38% to 61,997.66 by 0530 GMT. Earlier in the session, the NSE hit a record high of 18,604.45.

"Investors are focusing on positive events like the upcoming festival demand and earnings growth. Fundamentally, the support is coming from the monetary policy and slowdown in inflation," said Vinod Nair, head of research at Geojit Financial Services.

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India's central bank said on Monday policy support is needed for longer for a sustained recovery in Asia's third largest economy from a coronavirus-induced slowdown, even as demand has picked up. read more

"There are expectations the second quarter numbers will be better than previous quarter," Nair said.

The Nifty IT index (.NIFTYIT) rose 2.8% and was the top gainer among the sub-indexes.

Shares of information technology services provider Larsen and Toubro Infotech (LRTI.NS) surged 14% after reporting strong September-quarter results.

Consumer giant Hindustan Unilever is among a slew of companies that will report earnings later in the day.

TTK Prestige (TTKL.NS) surged as much as 20% to a record high of 10,587.15 rupees after the kitchen appliance maker said it will consider a sub-division or split of shares.

Shares of fast moving consumer goods company ITC Ltd (ITC.NS) fell 4% and was the top loser on the bluechip Nifty 50 index.

Indian Energy Exchange (IIAN.NS) soared nearly 20% to a record high on Tuesday after the energy trading platform said it will consider a bonus issue of shares.

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Reporting by Nallur Sethuraman in Bengaluru; Editing by Anil D'Silva and Krishna Chandra Eluri

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