Kotak Mahindra Bank, Wipro keep Indian benchmarks afloat amid US policy jitters

Jan 20 (Reuters) – Indian shares inched higher on Monday, led by gains in Kotak Mahindra Bank and Wipro after their better-than-expected quarterly earnings, while concerns over the U.S. policy framework under President-elect Donald Trump capped gains.

The Nifty 50 (.NSEI), rose 0.15% to 23,233 points as of 10:16 a.m. IST, while the BSE Sensex (.BSESN), rose 0.22% to 76,789.21. They eased from gains of about 0.5% at the open.

The broader, more domestically focussed small-caps (.NIFSMCP100), and midcaps (.NIFMDCP100),  shed about 0.25% each.

Seven of the 13 major sectors logged gains.

The private bank index (.NIFPVTBNK), and rose 1.6%. Kotak Mahindra Bank (KTKM.NS), jumped 9.4% after reporting a 10% rise in quarterly profit, helped by higher lending income.

Wipro (WIPR.NS), opens new tab surged 7.4% after beating third-quarter estimates for revenue and profit and signaling a revival in demand.

Kotak and Wipro were the top gainers on the Nifty 50.

However, worries and uncertainty about the U.S. policy framework under President-elect Trump were keeping investors nervous, said Aishwarya Dadheech, chief investment officer of Fident Asset Management.

“Caution will likely prevail until there is clarity on Trump’s policies and their likely impact on the dollar, U.S. Treasury yields, U.S. inflation and consequently, foreign flows into emerging markets like India.”

That, along with prospects of fewer rate cuts in the world’s largest economy, has led to foreign portfolio investors (FPI) offloading Indian stocks and bonds worth about $6.4 billion so far in January.

Among individual stocks, agrochemical firm Rallis India (RALL.NS), lost 7.6% after reporting a lower quarterly profit, while Wastewater treatment solutions provider Concord Enviro Systems (COND.NS), climbed 9% after reporting a higher profit.

Minerals provider Ashapura Minechem (ASHM.NS), jumped 6% after the company’s overseas arm signed a deal with China Railway.