Nifty, Sensex limits on strong corporate earnings increase
(Reuters) – Indian stocks opened positively on Monday when investors welcomed the second quarter earnings in large companies such as ICICI Bank Ltd and Dr. Reddy's Laboratories Ltd.
Brokers trade on their computer terminals at a joint stock company in Mumbai, India, August 25, 201[ads1]5. REUTERS / Shailesh Andrade / Files
The wider NSE Nifty was up 0.6 percent to 10.091 from 0602 GMT while the reference BSE Sensex was 0.6 percent higher at 33.540.32.
This follows a tumultuous week all over the world among increased concerns about corporate earnings and a decline in global economic growth.
ICICI Bank, India's third largest asset bank, reported a 56 percent higher than expected 56 percent fall in the second quarter's net earnings on Friday, but asset quality improved 9.1 percent to two months high.
ICICI's major competitor HDFC Bank fell as much as 3.4 percent to its lowest since April 23, while Kotak Mahindra Bank Ltd fell 5.2 percent.
"ICICI's results stood out, and money moves there, which is much cheaper than Kotak and HDFC," said Naveen Kulkarni, Research Director at Reliance Securities. "ICICI, who has beat the other two banks, could now retrieve."
Axis Bank managed 7.3 percent, while the public giant state bank in India increased by 4.8 percent.
The Nifty PSU Bank Index rose to 4.6 percent.
Dr. Reddy's Laboratories Ltd gave 6.4 percent, and received its largest intraday gain since May 22, after drugmaker had a better than expected increase in earnings in Q2, helped by higher sales in some emerging countries.
Macquarie and Citi increased the target price of the stock, with a "neutral" rating.
The Nifty Pharma Index jumped 4.3 percent.
Conglomerate Reliance Industries Ltd increased up to 2.4 percent.
Reporting by Chris Thomas in Bengaluru; Editing Sunil Nair
