Indian shares provisionally ended higher for a second session on Thursday, led by gains in auto shares on higher-than-expected October vehicle sales, while technology firm Wipro Ltd rose after saying it will separate its non-IT units to focus on outsourcing.
Reliance Industries Ltd recovered from a steep fall to end up 0.2 percent after a heavy share buy-back by the company. It fell as much as 2.1 percent after an anti-corruption activist accused the energy conglomerate of hoarding natural gas and exerting pressure on the government to favour it.
Shares also found support from an index of manufacturing activity. HSBC's India manufacturing purchasing managers' index (PMI) nudged up in October to 52.9 from September's 10-month low of 52.8, implying the sector was showing signs of stabilisation, with a pickup in orders. "The earnings season has been mixed till now and no clear trend has emerged," said Kaushik Dani, a fund manager at Peerless Mutual Fund. "So, for now, the market will take cues from global developments."
India's BSE index rose 0.3 percent or 56.32 points to end at 18,561.70 points, The 50-share NSE index rose 0.45 percent or 25.35 points to 5,645.05. Wipro Ltd, India's No 3 software services provider, said on Thursday it will fold all its non-IT businesses into a new company and focus exclusively on information technology.
Wipro shares ended up 3 percent, after the company's Chief Financial Officer Suresh Senapaty said profit margins are expected to improve after the demerger. Telecom operator Bharti Airtel's shares ended up 4.26 p ercent on hopes of a price increase and lower competition due to higher spectrum prices, said traders. Utility vehicle maker Mahindra & Mahindra gained 1.74 percent after reporting a rise in sales of 29 percent in October.