February 16, 2017 / 6:09 AM / 8 months ago

Indian shares edge higher, led by IT stocks

* NSE index up 0.15 pct, BSE index 0.1 pct higher

* TCS hits 5-month high on share buyback plan

* SBI up on cabinet nod for merger with subsidiary banks

By Tanvi Mehta

Feb 16 (Reuters) - Indian shares edged up on Thursday with IT stocks leading the gains after Tata Consultancy Services Ltd said its board would consider a share buyback plan at a meeting next week.

Shares of TCS, the country’s biggest software services exporter, rose as much as 2.7 percent to their highest since Sept 7, 2016, heading for their 10th session of gains in 12 this month.

“It (the share buyback news) will set a floor for the stock in the near term... May improve sentiment for other IT stocks but will be a short-term impact,” said Dipen Shah, senior vice president and head of private client group research, Kotak Securities.

The Nifty IT index rose as much as 1.6 percent to a more than five-month high with Infosys 1.7 percent higher and Tech Mahindra up 1.6 percent.

The broader NSE index was up 0.15 percent at 8,737.90 as of 0529 GMT, while the benchmark BSE index was 0.1 percent higher at 28,178.43.

Among other leading gainers, State Bank of India climbed as much as 3 percent after the federal cabinet on Wednesday approved its planned merger with five subsidiary banks.

Sun Pharmaceutical Industries Ltd and Tata Motors Ltd rose 2.70 percent and 1.9 percent respectively, after declining in the previous session on poor quarterly results.

Among losers, Dr.Reddy’s Laboratories Ltd fell as much as 3.9 percent after a U.S. court found that the company’s anti-nausea drug, palonosetron hydrochlorid, infringed certain U.S. patents. (Reporting by Tanvi Mehta in Bengaluru; Editing by Subhranshu Sahu)

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