Sensex edges higher; earnings season in focus next

The BSE Sensex edged higher amid volatility caused due to the expiry of the September equity derivative contracts on Thursday, led by Sun Pharma, which rose to an all-time high on hopes of higher sales of a key cancer drug.

Financial shares gained after the Reserve Bank of India (RBI) said on Wednesday it would take action to ensure adequate liquidity is available in the banking system and acknowledged liquidity conditions had been tightening. Traders say the markets may at best consolidate around the current levels as earnings reports would be in focus during October.

"Focus would be on earnings but only very few players are going to report profit growth, so expect the market to remain dull and sideways for now," said Jyotheesh Kumar, executive vice president of HDFC Securities,

The BSE index rose 0.19 per cent, or 37.61 points, to end at 19,893.85. The broader NSE index rose 0.14 per cent, or 8.40 points, to end at 5,882.25, taking support around its 200-day moving average for the third consecutive day.

Sun Pharmaceutical ended up 2.2 per cent after touching an all-time high of Rs 587 on expectations of higher sales of its key cancer drug, Doxil.