Nifty, Sensex edge higher; bank, telecom stocks gain
Sensex
Indian shares inched higher on Tuesday, driven by banking and telecom stocks after two major mobile network service providers said they planned to raise tariffs from next month.
The NSE Nifty 50 index rose 0.2 per centto 11,906.25, while the S&P BSE Sensex gained 0.4 per centto 40,455.36.
"Markets are in a consolidation phase after the recent rally," said A.K Prabhakar, head of research at IDBI Capital.
The Nifty main index has risen over 12 per centsince hitting a six-month low mid-August, supported by government measures to boost investor confidence as Asia's third-largest economy faces slowdown.
Tariff hike announcements by telecom companies will benefit banks as they have a huge exposure to the sector, Prabhakar said.
On Monday, Bharti Airtel and Vodafone Idea said they would increase mobile tariffs from December, after posting record quarterly losses.
Airtel shares rose 4.8 per centand were among the top gainers in the Nifty index, while Vodafone shares jumped 18 per cent.
Banking and IT stocks led gains, rising 0.2 per centto 0.4 per cent.
The Nifty has an immediate support in the range of 11,700-11,800, said AmitShah, technical research analyst with Indiabulls Ventures, in a note.
The index is poised to hit an all-time high above the 12,100 zone, Shah added.