July 25, 2019 / 4:52 AM / 3 months ago

Indian shares rise, set to snap five days of losses

* NSE index up 0.7%, BSE rises 0.8%

* Bharti Infratel top gainer after strong qtr

* Nifty pharma index climbs 2.2%

By Chris Thomas

July 25 (Reuters) - Indian shares rose on Thursday after five sessions of losses, buoyed by gains in financial and pharmaceutical stocks, while telecom tower operator Bharti Infratel Ltd hit a near four-week high after a strong quarter.

The broader NSE index was up 0.7% at 11,350.55 as of 0424 GMT, while the benchmark BSE index was 0.75% higher at 38,132.81.

The indexes were set to snap their longest losing streak since mid-May, which was triggered by heavy foreign investor selling on concerns of higher tax surcharges, slowing economic growth and a weak start to the corporate earnings season.

“This is just a bounce after several days of declines ... Nifty will go down to the 11,000 levels sooner than later as pressures persist and foreign investors (continue to) pull out their money,” said Dhananjay Sinha, head-Institutional Research, Economist and Strategy at Emkay Global Financial Services.

Technical analysis shows the NSE index is likely to test a resistance at 11,488.01. The index’s wave pattern suggests the correction is not yet complete.

Broader Asian shares edged up after a tech-fuelled rally on Wall Street, while the euro stayed near two-month lows as soft economic data fuelled hopes the European Central Bank could cut rates at its meeting on Thursday.

Bharti Infratel rose as much as 5.4%, its sharpest intraday jump since February, and was the top percentage gainer on the NSE index. The tower operator blew past estimates with a near 40% jump in quarterly profit on Wednesday.

Finance stocks also contributed to gains at the top, with IndusInd Bank Ltd and Indiabulls Housing Finance Ltd rising 2.6% each.

Non-bank lender Shriram Transport Finance Company Ltd saw its best day in over nine months after posting an 11% jump in quarterly profit.

The Nifty Pharma Index climbed as much as 2.2%.

Drugmaker Cipla Ltd advanced 3.9% in its biggest daily rise since May 20, while Dr.Reddy’s Laboratories Ltd rose 1.9%.

Shares of Tata Motors Ltd fell as much as 3.3% to their lowest since Feb. 11 ahead of the automaker’s quarterly results. The stock was the biggest percentage loser on the indexes. (Reporting by Chris Thomas in Bengaluru; editing by Gopakumar Warrier)

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