Nifty, Sensex extend gains, Indian Oil Corporation drops after weak results

Indian shares extended gains seen through the week on Friday, as a raft of strong earnings raised expectations of a better December quarter.

Broader Asian shares reversed early losses with MSCI`s broadest index of Asia-Pacific shares outside Japan inching up 0.16 per cent after a surprise bounce in Chinese manufacturing activity boosted investor sentiment.

In domestic markets, the broader NSE index was up 0.23 per cent at 11,904.05 as of 0405 GMT, while the benchmark BSE index was 0.25 per cent higher at 40,219.86.

Indian shares have seen steady gains in the last few sessions buoyed by positive global cues, a strong set of corporate results and expectations of a better third quarter.

The Nifty Media index rose as much as 3.49 per cent, gaining the most among the 14 sectoral NSE indexes.

The Nifty PSU Bank index, which tracks the country`s state-run lenders, rose as much as 0.83 per cent, with shares of Central Bank of India rising nearly 6 per cent.

"Today is the first day of the new derivative segment and we have had one of the best months in the last four months, so that positivity has continued," said A.K. Prabhakar, head of research at IDBI Capital in Mumbai.

Auto stocks will be in focus on Friday as automakers are set to report their monthly sales data. The Nifty Auto index inched up 0.24 per cent in early trade.

Shares of lender Yes Bank Ltd were flat ahead of quarterly results announcement.

State-owned oil retailer Indian Oil Corporation Ltd slipped as much as 4.22 per cent and was the biggest loser on the NSE index after the refiner recorded an 83 per cent slide in quarterly profit.

Meanwhile, India`s fiscal deficit in the six months through September approached 93 per cent of the target for the full year, limiting the scope for Prime Minister Narendra Modi to consider more tax cuts to boost economic growth.