(Reuters) -India’s shares rose on Tuesday, led by energy stocks, while analysts expected quarterly corporate results beginning later this week to influence the near-term trajectory of domestic equities.
The Nifty 50 gained 0.3% to 23,686.1 points as of 10:03 a.m. IST, while the BSE Sensex added 0.15% to 78,075.
On Monday, both indexes lost about 1.6%, the worst single-day performance since Oct. 3, 2024, amid earnings worries after lacklustre updates from some companies, concerns over the spread of human metapneumovirus (HMPV) and sustained foreign outflows.
“Clarification by the government that there is no room for undue concern from the virus can facilitate a rebound in the markets and dip-buying,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
While the benchmarks have rebounded from Monday’s drop, markets will get clear directional cues from the corporate earnings starting from Thursday, two analysts said.
Eleven of the 13 major sectors advanced. The broader smallcaps and midcaps rose about 0.7% each.
The oil and gas index advanced about 1.5%. Index heavyweight Oil and Natural Gas Corp jumped 3.5% and was the top gainer on Nifty 50 index.
CLSA upgraded the upstream oil company’s stock to “high conviction outperform” from “outperform” and raised its target price to 360 rupees from 330 rupees, citing potential uptick in earnings and attractive valuations.
Oil marketing company Bharat Petroleum Corporation rose 1.5% and city gas distributors GAIL and Indraprastha Gas gained 2.3% and 1%, respectively, after BPCL gave an in-principle nod to list Maharashtra Natural Gas (MNGL), a joint venture of the three companies.
Citi said listing MNGL could help unlock value for the three companies.
Online food delivery platform Zomato shed 4% after Jefferies downgraded to “hold” from “buy”, citing worries over profitability due to rising competition in quick commerce business.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema, Mrigank Dhaniwala and Sumana Nandy)
