BENGALURU - Indian shares closed 1.7% higher on Wednesday after six consecutive sessions of declines, with the banking sector leading gains, as investors geared up for second-quarter corporate earnings.
Company earnings for the year ending March 2020 are expected to receive a boost after the Indian government moved to slash corporate taxes last month to 22% from 30%.
“The second-quarter earnings season is unfolding and there are expectations of it being a little bit better,” said Gaurang Shah, senior vice president at Geojit Financial Services, referring to the fiscal second quarter ended Sept. 30. “Both Q3 and Q4 are going to be much more better.”
Tata Consultancy Services Ltd is expected to report its results on Thursday, marking the start of the quarterly earnings season.
The broader NSE Nifty ended 1.74% higher at 11,319.60, while the benchmark BSE Sensex closed up 1.72% at 38,177.95.
Private-sector lender IndusInd Bank Ltd gained 5.5%, topping both the NSE and BSE indexes.
Beaten-down stocks of state-run lenders gained sharply, with the Nifty PSU bank index closing 3.1% firmer, after losing 17% in the previous two weeks.
Reporting by Sachin Ravikumar, Editing by Sherry Jacob-Phillips
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