Sensex edges higher but caution remains on global woes

REUTERS - Indian shares rose on Thursday with blue chips such as Tata Motors rebounding after a three-session losing streak was seen as overdone, though broader gains were capped by persistent worries about the economy and mixed earnings results.

The cautious mindset was compounded by mixed economic data from China, which showed the services sector expanded at a slower pace in April, though firms did resume adding staff.

Back home, sentiment remained jittery as investors parsed a raft of mixed earnings reports and awaited for fresh trading cues after a 12 percent rally in the past two months.

"Markets had risen sharply in the past two months so obviously there is some nervousness and urge for profit-booking now, but the undertone remains positive. If we have good monsoon then market can move up 5 percent from here," said Sudip Bandyopadhyay, chairman and managing director of Inditrade Capital.

 

The broader NSE Nifty was up 0.39 percent at 7,736.54 as of 0622 GMT, after falling as much as 0.1 percent earlier in the session.

The benchmark BSE Sensex was 0.49 percent higher at 25,224.17.

Tata Motors rose as much as 3 percent after slumping 7 percent on Wednesday.

Meanwhile, Sun Pharmaceuticals gained 1.3 percent after the company announced positive phase-3 data for plaque psoriasis drug tildrakizumab.

Among the decliners, Adani Port and Special Economic Zone fell 3 percent, down for a second straight session after Jefferies cut its price target as it believed a slowdown in core port earnings growth would cap any upside in Adani Port.

Idea Cellular , India's third largest telecom company, fell more than 5 percent. Idea may spend $1.3 billion in adding data spectrum in an upcoming auction around July, the Economic Times reported, citing a note from HSBC.

(Reporting by Aastha Agnihotri in Bengaluru; Editing by Sunil Nair)