BENGALURU :Indian shares advanced on Monday as strong earnings from Tata Motors Ltd and DLF Ltd added to the optimism over cooling domestic retail inflation.
The Nifty 50 was up 0.38 per cent at 18,382.90 as of 10:22 a.m. IST, while the S&P BSE Sensex rose 0.43 per cent to 62,296.54.
Eleven of the 13 major sectoral indexes advanced, with auto and realty stocks rising nearly 1 per cent and 2.5 per cent, respectively.
Tata Motors, which gained 4 per cent, powered the rise in the auto index, while DLF, which rose as much as 4.89 per cent to a fresh 52-week high, pushed up the realty index. Both companies had reported a surge in March-quarter profit.
"Expect further consolidation due to mixed signals from the global front," said Ajit Mishra, vice president - technical research at Religare Broking Ltd.
"There will be no shortage of trading opportunities, thanks to the ongoing earnings season."
India's retail inflation data eased to an 18-month low of 4.7 per cent in April, well below the central bank's upper tolerance limit of 6 per cent for the second consecutive month. India's wholesale price index inflation for April, due on Monday, is also expected to ease on base effects.
Economists now expect India's central bank to maintain a "pause" on rate hikes, following the slide in inflation.
Global equities, on the other hand, remained subdued, after a survey showed U.S. consumer sentiment fell to a six-month low in May on fears of a potential recession. Caution ahead of key macro data and rate decision from China also weighed on sentiment.
Among individual stocks, drug maker Cipla Ltd lost more than 4 per cent, the most among Nifty 50 stocks, after reporting a smaller-than-expected profit.
Meanwhile Avenue Supermarts Ltd, which operates the DMart chain of retail stores, fell as much as 4.65 per cent after reporting a drop in profit margins.