Indian shares rallied for a second straight session on Thursday, buoyed by strong quarterly earnings. Federal bonds stayed weak in cautious trade as investors kept away ahead of a 50-billion-rupee issuance, due early February and next week's key rate setting meeting of the US Federal Reserve. The 30-share Mumbai Stock Exchange index rose 1.24 percent to 6,239.43 points, taking gains in two sessions to 2.2 percent. Wednesday was a market holiday for India's Republic Day.
"Investors seemed to take their cues from the firmer global markets and the flow of good earnings we've had, plus the smooth rollover of futures contracts," said Amisha Vora, head of institutional equities at Prabhudas Lilladher.
"But the market will still trade in a range and not rise higher than the 6,400-6,450 level until the budget," she said.
India's federal budget will be presented in late February.
Blue-chips and technology firms led the gainers.
Leading mobile telecoms provider Bharti Tele-Ventures Ltd rose 3.2 percent after it said its past quarter profit rose 131 percent.
State-run Steel Authority of India Ltd, the biggest steel maker, rose 0.5 percent after it said its profit more than doubled to 15.14 billion rupees.
India's biggest listed media firm, Zee Telefilms Ltd, rose 3.7 percent after it said its net profit rose 4.5 percent to 384.1 million rupees.
Auto makers added gains following strong earnings, with India's biggest car maker, Maruti Udyog, rising 3.4 percent. Maruti is majority owned By Japan's Suzuki Motor Corp.
Software services firms rose on gains on the technology-laced Nasdaq. Infosys Technologies Ltd, the second-biggest exporter, climbed more than 2 percent and Wipro Ltd, the third-ranked exporter, rose 2.7 percent.
Bonds drifted lower amid supply and interest rate concerns.
The benchmark 10-year bond's yield closed at 6.7585 percent, just up from Tuesday's 6.7546 percent close.
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