October 18, 2019 / 4:40 AM / a month ago

Indian shares rise on Brexit deal, positive earnings hopes

* NSE index, BSE index both up about 0.3%

* Yes Bank gains 6%

BENGALURU, Oct 18 (Reuters) - Indian shares gained on Friday, as global investor sentiment was high after the UK and European Union’s Brexit deal, and on hopes of a positive quarterly earnings season in the domestic market.

The broader NSE index rose 0.3% at 11,621.10 as of 0425 GMT, while the benchmark BSE index was up 0.33% at 39,182.82.

Britain clinched an eleventh-hour Brexit deal with the EU on Thursday, more than three years after Britons voted in a referendum to leave the bloc, but Prime Minister Boris Johnson still faces a knife-edge vote in parliament to get it approved.

In India, the September-quarter earnings season began on a mixed note with some large-cap companies beating estimates and others reporting below-par results.

However, investors were hopeful that last month’s government move to cut corporate taxes will result in a positive earnings season as large-cap companies such as Hindustan Unilever already reported better-than-expected results riding on the lower rates.

“There are positives in many sectors and there are possibilities of near-term optimism due to the earnings so far and the global sentiment,” said Vinod Nair, head of research at Geojit Financial Services.

“The news coming in is that it’s getting positive and positive.”

Battered mid-cap and small-cap shares surged as both the Nifty midcap index and the Nifty smallcap index rose between 1% and 1.5%.

The state-owned bank index was the top gainer among the sub-indexes and rose 1.3%.

Yes Bank shares rose 6.75% and topped the gainers on the Nifty.

Zee Entertainment shares fell as much as 6.11% after the company’s quarterly earnings missed estimates.

Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.17%, after China’s economic growth slowed more than expected to 6% year-on-year in the third quarter, the weakest pace in almost three decades. (Reporting by Derek Francis in Bengaluru; Editing by Shounak Dasgupta)

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