Sensex edges higher at at 32,390.27; Tata Steel gains ahead of results

Mumbai: Indian shares edged higher on Monday, as Tata Steel Ltd rose on expectations of strong quarterly results, but broader gains were capped by profit-taking on concerns over valuations.

Both the NSE Nifty and BSE Sensex hit record highs last week, raising concerns that factors such as positive earnings and hopes of an improving economy were already factored into prices.

"Predominantly, we're not expecting a major upswing or downswing in the market. Investors are a little cautious, taking into account the valuations which have already moved to the higher end of the spectrum," said Teena Virmani, vice president, Kotak Securities.

The broader Nifty was up 0.16 percent at 10,082.65 as of 537 GMT. The benchmark Sensex was 0.20 percent higher at 32,390.27.

Shares of Tata Steel gained as much as 3.3 percent to their highest in over six years. Later in the day, the company is expected to post a consolidated profit for the quarter-ended June, compared with a loss last year, according to Thomson Reuters data.

The Nifty Bank index was trading 0.6 percent higher. The index lost 1.2 percent since last Tuesday as investors were disappointed after India's central bank maintained a "neutral" stance despite cutting interest rates by 25 basis points.

The Nifty IT index fell as much as 0.86 percent to its lowest in over a week. Tata Consultancy Services and Infosys Ltd led the losses, with both falling over one percent.