Indian shares edged higher on Tuesday as state-run banks gained after the government said it would infuse 229.15 billion rupees ($3.41 billion) in 13 state-run banks this fiscal year as part of a previously announced plan. Those gains helped offset earlier losses after sliding oil prices hit Asian markets and retail heavyweight Hindustan Unilever posted disappointing volume growth. The BSE index rose 0.15 percent to 27,787.62, after earlier falling as much as 0.39 percent.
The broader NSE index rose 0.23 percent to 8,528.55, after falling as much as 0.38 percent earlier in the day. State Bank of India rose 0.37 percent, but Hindustan Unilever fell 2.9 percent. Trading volumes were thin, with investors also waiting for other corporate earnings and the progress of the monsoon session of parliament amid hopes the government would be able to push through a revamp of the goods and services tax.
After hitting an 11-month high last week, the broader NSE index posted mild losses in the previous two sessions. It was down 0.01 percent at 0658 GMT after earlier falling as much as 0.18 percent. "I think some amount of selling is being experienced because technically the market is overbought. That is why we see pressure on the selling side," said Deven Choksey, Managing Director at KR Choksey Securities.
Hindustan Unilever fell as much as 3.40 percent after its volumes growth in the April-June quarter disappointed some investors even as its net profit beat estimates. Shares were last down 3 percent. Meanwhile, adding to the woes of IT companies, MindTree fell to a more than one-and-a-half year low after profit fell and Credit Suisse cut its rating on the stock. MindTree was last down 6.5 percent and the Nifty IT index was down 0.18 percent.
Among gainers, indebted infrastructure firm Jaiprakash Power Ventures Ltd rose as much as 13.1 pct to its highest since January 13 after saying it will sell a 500 megawatt thermal power plant in central India to JSW Energy Ltd for 27 billion rupees ($401.8 million) including debt.