By Indulal PM
MUMBAI (Reuters) - The Nifty rose on Wednesday, snapping a two-session losing streak as blue-chips such as Bharti Airtel Ltd, Lupin Ltd and Dr Reddy's Laboratories Ltd gained after their earnings beat estimates.
Not all companies beat profits. Larsen & Toubro Ltd slumped after its earnings disappointed investors, sparking rating downgrades from Citigroup and Deutsche Bank.
Broader gains were also capped amid caution ahead of the monthly derivatives contract expiry due on Thursday, with investors also awaiting the outcome of the U.S. Federal Reserve's meeting later in the day.
"There is some caution ahead of derivatives expiry. But the overall trend remains positive. There could be stock-specific movements like that happened today, based on corporate earnings," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.
The Sensex gained 0.37 percent at 26,087.42, while the broader Nifty ended 0.55 percent higher at 7,791.40.
Bharti Airtel rose 5.4 percent to the highest level since February 2012 after its June-quarter net profit adjusted for exceptional items, including tax provisions, beat estimates.
Drug makers also rose on better-than-expected profits. Dr. Reddy's Laboratories Ltd rose 1.9 percent after posting a 52 percent surge in its quarterly net profit from a year earlier.
Lupin Ltd rose 4.9 percent after reporting a higher-than-expected profit, helped mainly by higher sales in the United States and India, and lower expenses.
ITC Ltd gained 0.6 percent after posting a better-than-expected 25 percent rise in quarterly sales as demand for smaller and cheaper cigarettes grew and its consumer goods business put in a stronger performance.
However, Larsen & Toubro fell after the company's earnings missed some analysts' estimates. L&T shares ended 7.1 percent lower, marking their biggest single-day fall since July 2013.
(Reporting by Indulal PM; Editing by Subhranshu Sahu)
