By Arnab Paul
(Reuters) - Indian shares got off to a solid start on Friday as the fresh derivatives series opened, with both indexes hitting record highs on strong quarterly results, including that of index heavyweight ITC Ltd.
ITC, the country's biggest cigarette maker, surged to a year-high after June-quarter profit beat expectations late on Thursday. ITC accounted for about a quarter of the broader NSE index's gains.
Bank shares extended gains with the index of state-run bank stocks rising 1.4 percent. The index rose 7.9 percent in the last three sessions, after lenders lined up to enrol for a scheme for faster bad-loan resolution.
Markets will now turn focus on the central bank policy meet next Wednesday.
"Markets won't necessarily react negatively if there is a rate hike with positive commentary from RBI," said Anita Gandhi, whole-time director at Arihant Capital Markets.
"With good monsoon (rains) and strong corporate results, expect the market to continue its bullish trend with upside of another 100/150 points on Nifty levels in the near term."
According to a Thomson Reuters poll of 63 economists, 37 said the RBI will raise rates again in August and 22 respondents said the next rate hike would come by end-2018 or in the January-March quarter next year.
The broader NSE Nifty was up 0.71 percent at 11,247.35 as of 0644 GMT, hitting its highest ever for a second straight session while the benchmark BSE index rose 0.82 percent higher at 37,285.04, its fourth all-time high in as many sessions.
Both indexes are poised to record a weekly gain.
Reliance Industries Ltd was also among the top contributors to the NSE index ahead of its quarterly results later in the day. The oil-to-retail conglomerate will also report results of its telecom arm Reliance Jio.
Telecom giant Bharti Airtel Ltd hit a three-week high after posting a surprise first-quarter profit on Thursday.
Hindalco Industries Ltd gained 6.9 percent after the company confirmed acquisition of U.S. aluminium processor Aleris Corp for $2.6 billion by its Novelis Inc unit.
Lender ICICI Bank Ltd was up 1.6 percent ahead of its quarterly results later in the day.
(Reporting by Arnab Paul in Bengaluru; Editing by Gopakumar Warrier)
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