Indian shares edge higher; midcaps, smallcaps scale fresh highs

BENGALURU, Aug 1 (Reuters) - Indian shares rose marginally on Tuesday, on broad-based gains, after a positive start to the week as investors digested key earnings.

The Nifty 50 (.NSEI) index was up 0.12% at 19,777.90, while the S&P BSE Sensex (.BSESN) rose 0.14% to 66,620.71 at 10:18 a.m. IST.

Domestic-linked small caps (.NIFSMCP100) and mid-caps (.NIFMDCP100) climbed 0.7% and 0.4%, respectively, outperforming the blue chip indexes and hitting fresh 52-week and all-time highs.

Twelve of the 13 major sectoral indexes edged up. Metal stocks (.NIFTYMET) extended gains from the previous session, adding 0.50% on hopes of further stimulus from the worlds largest metals producer and consumer China to revive its consumption. The index advanced 1.77% on Monday.

High-weightage information technology (IT) stocks advanced 0.7% after adding 1.49% on Monday on signs of moderation in U.S. inflation. IT firms earn a significant share of their revenue from the United States.

\“The earnings season so far has been along expected lines. Strength in financials and weakness in IT,\” said Samrat Dasgupta, chief executive of Mumbai-based Esquire Capital Investment Advisors.

\“IT valuations are below long-term averages, but rest of the sectors are above long-term average. This is the phase to preserve some cash to utilise later because there are risks of a correction in the market.\”

State-owned utility Power Grid Corporation of India (PGRD.NS) lost as much as 4.62% to a 10-month low after posting a more than 5% slide in first-quarter profit on weaker demand in its core transmission business. The stock was the top Nifty 50 loser.

Power generator NTPC (NTPC.NS) surged as much as 2.36% to a record high. The stock has risen over 6% in the last two sessions after reporting a 24% jump in June-quarter profit, over the weekend. NTPC was the top Nifty 50 gainer.

($1 = 82.2500 Indian rupees)

Reporting by Bharath Rajeswaran in Bengaluru; Editing by Nivedita Bhattacharjee and Dhanya Ann Thoppil

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