Sensex gains on positive corporate earnings

REUTERS - Indian shares edged higher for a second consecutive session on Thursday as improved corporate earnings lifted sentiment, but broader gains were capped ahead of expiry of monthly derivatives contracts.

Shares also got a boost after the Federal Reserve said near-term risks to the U.S. economic outlook had diminished, but gave no firm indication of whether it would raise rates at its next policy meeting in September.

Foreign investors have net bought Indian shares for 13 consecutive sessions as of Tuesday, bringing net purchases for the month to $1.3 billion and overall buying so far this year to $4.2 billion.

"We have witnessed multiple FII (foreign institutional investor) buying take place and the current trend in earnings is only acting as a catalyst," said Rajesh Agarwal, director of research at Eastern Financiers.

The broader NSE Nifty was up 0.39 percent as of 0644 GMT, a day after it touched the highest since April 2015.

The benchmark BSE Sensex was 0.40 percent higher.

Gains could however be capped as monthly derivative contracts are set to expire at the end of the session.

Bharti Airtel rose as much as 2.5 percent as June-quarter net profit beat analysts' estimates, Thomson Reuters data showed.

Asian Paints hit a record high after posting a 19 percent increase in profit in the June quarter. It was the top percentage gainer on the Nifty.

Shares of Multi Commodities Exchange of India (MCX) rose 5.5 pct after the government raised the foreign investment limit in stock exchanges to 15 percent from 5 percent.

(Reporting by Arnab Paul in Bengaluru; Editing by Biju Dwarakanath)