Indian shares rose on Wednesday, recovering from steep falls in the previous session, as auto makers such as Maruti Suzuki India Ltd rose on hopes sales would rebound, while drug makers including Glenmark Pharmaceuticals extended a recent rally on the back of robust earnings.
State Bank of India pulled back from the previous session's drop as hopes of sturdier-than-expected quarterly earnings offset concerns after the central bank on Tuesday raised the provisioning level for restructured assets. Indian shares posted their biggest monthly fall since May, reversing the gains seen last month after the impact from the government's slew of fiscal and economic reforms waned.
India's BSE index rose 0.4 percent or 74.53 points to end at 18,505.38 points, falling 1.37 percent for the month, pulling back after surging 7.65 percent in September. The 50-share NSE index rose 0.39 percent or 21.80 points to 5,619.70, also falling 1.47 percent for the month. State Bank of India gained 1.7 percent, rebounding from the previous session's 4.3 percent fall.
Maruti Suzuki rose 3.4 percent after India's biggest carmaker said on Tuesday it expects sales to accelerate in the months ahead helped by new launches after posting a fifth-straight quarterly profit decline. Tata Motors shares gained 2.9 percent after Goldman Sachs said the auto maker's market cap has potential to reach $30 billion by fiscal 2017, from its current value of $13.8 billion, should unit Jaguar Land Rover take action such as launching smaller engine and lower priced vehicles.
Glenmark shares rose 8.6 percent on Tuesday after its net profit almost tripled in the July-September quarter. India's no. 2 drug maker Dr Reddy's Laboratories gained 1.9 percent, up for a third day, after posting a better-than-expected 32 percent rise in quarterly net profit. However, among decliners, Larsen & Toubro fell 0.7 percent, down for a third session on continued profit-booking after a rally last week helped by market-beating July-September earnings. Bharat Heavy Electricals lost 1.75 percent, continuing to reel after reporting a drop in quarterly earnings on Monday.
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