Indian shares closed higher on Thursday, erasing their losses suffered on Friday after Britons unexpectedly voted to exit the European Union, as investors focused on improving prospects of the domestic economy. Hopes of a good monsoon and a recovery in earnings have boosted the market, with the broader NSE index surging more than 7 percent in the April-June quarter, its strongest since April-June 2014 and its first quarterly gain in five.
The NSE index ended 1.02 percent higher at 8,287.75, while the benchmark BSE index closed up 0.97 percent at 26,999.72. Hopes of a good monsoon and a recovery in earnings have boosted the market, with the broader NSE index surging more than 7 percent in the April-June quarter, its strongest since April-June 2014 and its first quarterly gain in five.
Shares have recovered some 2.5 percent since they fell sharply on Friday following the Brexit vote. "All the bad news like Brexit and Rexit (RBI Governor Raghuram Rajan's exit) is getting priced in and we are definitely heading on the upside," said B. V. Rudramurthy, managing director at Vachana Investments Pvt Ltd.
For the month, the NSE was up 1.65 percent, while the BSE was 1.28 percent higher. Markets are, however, expected to remain volatile ahead of the expiry of derivatives contracts on Thursday. Hero MotoCorp Ltd rose 2.20 percent, while Bajaj Auto Ltd and TVS Motor Co Ltd were up 1.74 percent and 3.05 percent, respectively. Idea Cellular Ltd rallied for a fourth straight session, advancing as much as 2.29 percent to its highest since June 3 after the company said on Tuesday it was confident of regaining market share.