Sensex edges higher; investors track GST Bill progress

(Reuters) - Indian shares edged higher on Tuesday on hopes parliament would pass the Goods and Services Tax (GST) Bill as early as this week, and after the country's weather office retained its forecast for above-average monsoon rains this year.

The GST Bill, which has been listed for discussion by the upper house of parliament on Wednesday, would be the most far-reaching tax reform in India.

Sentiment was also boosted after India's weather office said on Monday it expected June-September monsoon rains to be 106 percent of a long-period average.

Analysts however said the GST Bill's enactment was unlikely to spur any major rally given indexes were seen already reflecting a positive outcome.

The broader NSE Nifty hit its highest since April 2015 on Monday.

"A rally in the short-term might not sustain for too long," said Neeraj Dewan, director at Quantum Securities.

"We can also expect some amount of profit-booking happening as the Bill progresses."

The Nifty rose as much as 0.59 percent, while the benchmark BSE Sensex gained as much as 0.61 percent.

Auto makers were among the leading gainers after companies reported robust sales in July. The S&P BSE Auto Index rose as much as 1.1 pct to a record high.

Maruti Suzuki India Ltd rose as much as 2.8 percent to a record high after its July sales went up by 12.7 percent.

The car maker has hiked prices of select models effective Aug. 1.

Sun Pharmaceutical Industries gained as much as 1.4 percent after U.S. health regulators approved the drugmaker's generic version of diabetes drug, Glumetza.

Shares of software services provider Tech Mahindra Ltd rose as much as 4 percent on strong June-quarter results.

PVR Ltd fell as much as 2.5 percent. It gained as much as 13.76 percent in the previous three sessions.

Zee Entertainment Enterprises Ltd lost as much as 2.1 percent, snapping a two-day rally.

Shares of InterGlobe Aviation Ltd, which owns budget airline IndiGo, fell as much as 6.9 percent to their lowest since July 5 as Q1 profit fell, hurt by "competitive fare pressures."

(Reporting by Samantha Kareen Nair in Bengaluru; Editing by Biju Dwarakanath)