Indian shares edged higher on Monday, heading for a fifth straight session of gains after earnings of blue chips such as Hindalco Industries Ltd beat street estimates, boosting hopes that the economy was recovering. 

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The broader NSE Nifty was up 0.25 % at 8177.3 as of 0809 GMT, after gaining 5.6 % over the previous four sessions. 

The benchmark BSE Sensex was 0.27 % higher at 26730.82.

Earnings for the January-March quarter have so far been largely better than street estimates, raising optimism over India`s economic prospects, with investors betting that above-average monsoon rainfalls would support rural demand. 

However, traders say the current rally could be speculative as foreign investors have been buying very little in cash and that most of their buying has been in index futures and options.

Traders also warned that the gains could be capped by global developments, including the prospect of a U.S. rate hike, even as foreign investors bought a net 103.3 billion rupees ($1.54 billion) in index futures and options over the past two sessions.

Hemen Kapadia, senior vice president at KR Choksey Securities, said he was surprised at the buying by foreign investors but added that he still expected a correction to follow the gains.

"We have to respect the prices and we think 8300-8350 could be seen with a small correction, which is overdue after this stellar rally," he said.

"Going ahead, U.S. Federal Reserve meeting and Brexit are the key triggers to watch, which will keep upside capped."

Hindalco Industries shares surged 12 % after the company said its net profit more than doubled in the January-March quarter, surprising analysts and beating estimates. 

Shares of state-run State Bank of India gained 2 % after India`s biggest lender on Friday reported quarterly earnings that were worse than expected but said fewer than feared of its loans risked turning sour. 

Among decliners, shares of Sun Pharmaceutical Industries fell 1 pct after the U.S. Department of Justice subpoenaed India`s largest drugmaker over the pricing and marketing of generic drugs it sells in the United States, as part of a broader investigation.
($1 = 67.2800 Indian rupees)