Investing.com-- Indian stocks rose on Wednesday following strong earnings and increased dealmaking activity in the country’s biggest companies, largely outperforming their Asian peers ahead of a Federal Reserve interest rate decision.
The Nifty 50 index rose 0.7% to 19,810.45 points, while the BSE Sensex 30 rose 0.7% to $66,841.01 points by 00:56 ET (04:56 GMT), with both indexes moving back towards record highs hit earlier in the month.
Industrial conglomerate Larsen & Toubro Ltd (NS:LART) was the biggest boost to both indexes, rising 3.7% to a record high after logging better-than-expected June quarter results, and as it declared a special dividend and announced an INR 10,000 crore ($1 = INR 81.987) buyback. The stock was also the top performer on both Indian benchmarks.
Tata Motors Ltd (NS:TAMO) rose 1.3% after the automaker also logged better-than-expected quarterly earnings on improved margins in its passenger vehicle and its luxury unit, Jaguar Land Rover.
Reliance Industries Ltd (NS:RELI), the biggest firm in India by market value, rose over 2% on Wednesday after the conglomerate entered a joint venture agreement with Canada’s Brookfield Infrastructure (NYSE:BIPC) and Digital Realty (NYSE:DLR) to build data centers.
Media reports also said that the Qatar sovereign fund was in talks to take a stake in Reliance’s retail arm.
Gains in Indian stocks come after they saw a heavy dose of profit taking over the past three sessions. Optimism over strong earnings and a positive outlook for the Indian economy drove Indian stocks to record highs in July.
Analysts said that local stocks could now potentially push higher, after seeing consolidation over the past three days.
Indian stocks also largely outperformed their broader Asian peers on Wednesday, as investors turned risk-averse before the conclusion of a Federal Reserve meeting later in the day.
The U.S. central bank is widely expected to raise rates by 25 basis points, and offer cues on future rate hikes.