Indian shares climbed on Tuesday, with Infosys Ltd gaining after its shareholders approved a buyback plan while Lupin Ltd rose after winning US approval for its hypertension drug. However, broader gains were limited as investors hedged their bets before corporate results kick in this week. Software bellwether Tata Consultancy Services Ltd reports on Thursday and index heavyweight Reliance Industries on Friday.
The July-September earnings will be viewed as a gauge to determine whether the current high valuations hold ground after a record-setting rally this year. "Going ahead, earnings revival is absolutely critical for the current market valuations to sustain.
Any disappointment can impact market sentiment given that second quarters are generally cyclical and could be impacted by factors like monsoon," said Teena Virmani, vice president, Kotak Securities. The broader NSE index was up 0.34 percent at 10,023.1 as of 0534 GMT, while the benchmark BSE index was 0.39 percent higher at 31,969.87.
Infosys was up 1.7 percent to be the top percentage gainer on the Nifty IT index, which gained as much as 0.86 percent to its highest since August 17. Shareholders of India's second-biggest IT firm on Monday approved a 130-billion-rupee ($1.99 billion) buyback plan. Drugmaker Lupin jumped to its highest since July 31, rising as much as 3 percent, after the US Food and Drug Administration approved its generic drug to treat hypertension.
Among other gainers, Adani Transmission Ltd hit the 10-percent upper circuit after the company entered into an exclusivity period with Reliance Infrastructure to discuss the proposed acquisition of the latter's Mumbai city power business.
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