Sensex Gains for Fifth Day; RIL, HDFC Rise on Earnings

The BSE Sensex rose for a fifth consecutive session on Monday as Reliance Industries rallied after its quarterly earnings beat estimates, while merger-related news led to gains in some companies such Kotak Mahindra Bank.

Sentiment was also helped as overseas investors, who have supported a rally in Indian shares this year, were net buyers for a third consecutive session on Friday with purchases of Rs 574 crore despite concerns over escalating tensions between Russian and the West.

Still, trading is likely to remain range-bound, according to dealers, with investors continuing to monitor earnings including those from Axis Bank Ltd on Tuesday, and Ambuja Cements Ltd and ACC Ltd on Thursday.

"Right now, the markets are completely driven by corporate earnings. There are no immediate triggers left. It's a time of consolidation and we will see stock-specific action in the near-term," said Daljeet S Kholi, head of research at IndiaNivesh.

The benchmark BSE Sensex rose 0.29 per cent to 25,715.17, while the broader Nifty ended 0.26 per cent higher at 7,684.20.

Reliance Industries rose 2.14 per cent after it posted stronger-than-expected earnings on Saturday, bolstered by strong revenue growth in its oil and gas business and higher margins in its core refining business.

Merger-related news also boosted some shares. Kotak Mahindra Bank rose 0.6 per cent after it said on Sunday it would buy a 15 percent stake in Multi Commodity Exchange of India (MCX) for Rs 459 crore. MCX closed 7.87 per cent higher, its highest since June 2013.

Mortgage lender Housing Development Finance Corp rose 2.78 per cent, gaining for a second consecutive session on speculation it would be merged into HDFC Bank.

The shares gained even as HDFC Bank Deputy Managing Director Paresh Sukthankar on told reporters the bank was not discussing a merger with HDFC as of now.

HDFC reported a 15 per cent rise in April-June earnings from a year earlier, while HDFC Bank reported a 21 per cent increase in June-quarter earnings. Shares of the lender were down 0.6 per cent.

Consumer stocks also gained on defensive buying as investors were looking to cut risk in portfolios. ITC gained 1.7 per cent while Hindustan Unilever ended 0.81 per cent higher.

Power companies were among the stocks which declined. Bharat Heavy Electricals ended 1.5 per cent lower, adding to its 1.9 per cent fall on Friday, while Tata Power ended 1.9 per cent lower, declining further from a 2.5 per cent fall on Friday.