The BSE Sensex edged higher on Wednesday as recently-hit stocks such as Infosys recovered, while Cairn India and HDFC rose on market talk index provider MSCI will increase the weighting of the two by its November review.
Corporate earnings and the Reserve Bank of India's policy review on October 30 are seen as the next big triggers for markets, given continued concerns about the outlook for economic growth and the continued threat of sovereign rating downgrades.
"Given the recent rally and most participants expecting GDP growth of 5.5 to 6 percent, what market needs is earnings support," said Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance.
"But the way the political environment and interest rates are today, it will be difficult for markets to substantially move ahead," he added.
The BSE Sensex rose 0.18 percent, or 33.07 points, to 18,610.77 points.
The Nifty rose 0.22 percent, or 12.25 points, to 5,660.25 points.
Recently battered shares recovered on Wednesday. Infosys Ltd
Larsen & Toubro
Also gaining on Wednesday, Housing Development Finance Corp
A source at MSCI told Reuters the weighting of both stocks are expected to change by later this year, attributing the reasons to recent block deals and private placements by the two companies.
Drug maker Lupin
However, cement makers ACC fell 1.25 percent, while Ambuja Cements dropped 3 percent after TV news channel ET Now reported the companies may provide a 2 percent royalty on sales to parent company Holcim
ACC declined to comment on the report, while Ambuja did not respond to questions from Reuters. The two companies are set to post earnings results on Thursday.
JSW called the charges "without basis."