Sensex edges up; ITC rallies after strong results

(Reuters) - Indian shares edged up on Monday as ITC rallied after posting stronger-than-expected March-quarter operating earnings, but broader sentiment was muted ahead of a deluge of corporate results and the expiry of derivative contracts this week.

Global stock markets were also a bit lacklustre as investors bet that the U.S. Federal Reserve was on track to raise rates sooner rather than later.

But the focus in India will likely be on corporate earnings, with Cipla, Tata Steel, Bharat Heavy Electricals Ltd and State Bank of India due to report earnings.

"We have F&O (futures and options) expiry and a whole host of large and mid-cap companies reporting this week and the next. My sense is that markets would be subdued and we may see bouts of short-selling depending upon how earnings are going to unfold," said Gaurang Shah, vice president at Geojit BNP Paribas.

The broader NSE Nifty was 0.16 percent higher at 7,761.14 as of 0656 GMT, while the benchmark BSE Sensex was up 0.07 percent at 25,319.01.

Shares of ITC jumped 3.4 percent after the cigarette maker on Friday posted operating earnings above expectations and said cigarette volumes were flat though positive after declining for 11 consecutive quarters.

Among other gainers, National Aluminium Co Ltd rose 5.4 percent ahead of a board meeting on May 25 to consider share buyback.

Power Grid Corp of India rose 2.3 percent after the BSE Ltd and S&P Dow Jones Indices said on Friday that the stock would be added to the benchmark index from June 20.

However, biscuits maker Britannia Industries dropped 6 percent after March-quarter results missed analysts' estimates.

(Reporting by Aastha Agnihotri in Bengaluru; Editing by Subhranshu Sahu)