Sensex inches up, but derivatives expiry weighs

Shares were slightly higher on Thursday, but sentiment was subdued ahead of the expiry of derivatives contracts and as investors awaited March-quarter results from private sector lenders Axis Bank and YES Bank.

The broader NSE Nifty was at 10,570.65, while the benchmark BSE Sensex was 0.20% higher at 34,571.78 at 2.30 pm.

“There is caution given the F&O expiry and stock specific moves will continue in the earnings season. Global macros are also worrisome,” said Siddharth Sedani, vice president - head equity advisory at Anand Rathi.

The 10-year US Treasury yield set a fresh four-year high of 3.035% on Wednesday, driven by worries about the growing supply of government debt and inflationary pressures from rising oil prices. But, robust corporate earnings helped quell concerns and Asian shares gained.

Software services exporter Wipro was among the biggest drags on the NSE index after its fourth-quarter profit missed estimates and guidance for the first quarter failed to please investors. Shares fell as much as 4.6%, their biggest fall since September 14.

Axis Bank fell 1.2% as analysts expected the bank to report a fall in profit, while YES Bank was marginally higher at 0.3% amid expectations of higher profit.

Shares of Mahindra & Mahindra Financial Services rose over 5% to a record high after profit surged in the fourth quarter.