After a subdued Tuesday, stocks Indian stocks rallied today on Bharti's stellar results and good news from Nestle and Adani.
The S&P BSE Sensex rose 0.83 percent and the Nifty increased 0.76 percent, heading towards their highest close since July 23. "After yesterday's credit policy the view was that we could go down and recover. My sense is that we're seeing some buying at lower levels," Gaurang Shah, vice president at Geojit BNP Paribas, said.
Bharti Airtel reported results yesterday after close, which showed a 40 percent rise in net profit to Rs 1,554 crore for the June quarter. It beat analyst estimates, and came on the back of gains from tower sales in Africa, and rise in mobile data revenue. The stock rose 3 percent, the highest in two weeks.
Nestle India gained the the most since the Maggi ban was imposed, after tests in a government laboratory found the instant noodles to be safe for consumption. The stock was up as much as 10 percent.
Adani shares soared after Foxconn chairman Terry Gou confirmed they are in talks to manufacture mobile phones in India. The stock advanced 9 percent, despite worrying developments in Australia where a federal court overturned government environmental approval for the $16 billion Carmichael coal mine project.
Investors are now focussing on earnings of companies, after the Reserve Bank decided to hold rates yesterday. “The event risk is out of the way, and the market is now focusing on the remainder of the earnings season, legislative agenda and other fundamental factors,” said P. Phani Sekhar, a fund manager at Karvy.
Tata Steel was among steelmakers which rose on news that the government is considering higher import tax on certain products. Other gainers include information technology stocks like Infosys, Tata Consultancy Services and Wipro, which led the rally on a strong U.S. dollar on rising expectations of a rate hike by the Federal Reserve.
(With agency inputs)