India's NSE index hit its highest in more than 11 months on Thursday tracking rising global markets, although broader gains were capped ahead of quarterly earnings and an expected government announcement about the next central bank chief. The broader NSE index rose 0.53 percent to end at 8,565, after earlier hitting its highest since August 10. The index fell as much as 0.22 percent intraday.
The benchmark BSE index rose 0.46 percent to 27,942.11 after earlier hitting its highest since August 19. Markets have been on edge ahead of the appointment of the next Reserve Bank of India governor, with local media reporting it could come as early as this week ahead of the start of a new parliament session on Monday. India earlier this week reported consumer inflation rose to 5.77 percent in June, increasing the odds of the central bank keeping interest rates on hold next month.
Data on Thursday showed India's wholesale prices rose at a faster-than-expected pace in June on higher food prices. "There are not many factors left for markets to react to immediately, hence market is taking a breather now and we see some amount of consolidation," said Saurabh Jain, assistant vice president of research at SMC Global Securities. Bank stocks recovered from losses on Thursday, with Punjab National Bank up as much as 5.3 percent and Yes Bank gaining as much as 0.8 percent. Jewellery makers such as Titan Company and Gitanjali Gems rose as the government relaxed excise duty rules. Shares of Tata Consultancy Services Ltd were up marginally ahead of results later in the day. Infosys Ltd fell as much as 1.2 percent after ending higher in the last four sessions ahead of results on Friday.