BSE Sensex snaps 7-day losing streak, gains 205 pts, ICICI Bank, HDFC Bank rally

Nov 14 2013, 18:04 IST
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The BSE Sensex rose 0.99 percent, while the broader NSE Nifty ended higher 1.12 percent. PTI The BSE Sensex rose 0.99 percent, while the broader NSE Nifty ended higher 1.12 percent. PTI
SummaryBoth local and foreign cues powered BSE Sensex with bank stocks emerging major beneficiaries.

BSE Sensex rose nearly 1 percent on Thursday after seven sessions of losses, as rate-sensitive stocks including lenders surged on the central bank's announcement of open market operations, while easing fears of tapering by the US Fed also helped.

ICICI Bank provisionally surged 3.7 percent, while HDFC Bank rose 1.5 percent.

Markets Top Gainers, Markets Top Losers

The BSE Sensex rose 0.99 percent, while the broader NSE Nifty ended higher 1.12 percent, retracing from their lowest closing levels in more than a month made on Wednesday.

Tata Steel shares surged 4.8 percent after the company's second-quarter profit beat expectations, helped by a rise in prices and market share at home.

Sensex graphs November 14

Indian shares snap 7-day losing streak, RBI policy, state elections in focus

(Reuters) Indian shares rose 1 percent on Thursday, snapping a seven-session losing streak as lenders rallied after the central bank governor announced bond purchases, easing some concerns about losses in the sector tied to their heavy debt holdings.

Shares also tracked a regional rally after U.S. Federal Reserve Chairman nominee Janet Yellen said the Fed has "more work to do" to help the U.S. economy, spurring hopes she would opt to delay tapering of monetary stimulus if her confirmation is approved by the U.S. Congress.

With reporting of July-September earnings results largely over, traders said the focus will be on a series of state polls this month ahead of general elections next year, and the Reserve Bank of India's policy review next month.

Data on Thursday showed India's headline inflation accelerated to an eight-month high of 7.0 percent in October, raising the prospect of a fresh rate hike despite the central bank governor's soothing words on Wednesday on core retail inflation.

"Post a strong quarter of earnings and comments from the Fed Chief nominee, indicating a delay in any tapering of QE, markets did rallied," said Rajat Rajgarhia, director of research at Motilal Oswal Financial Services Ltd.

"However, near-term trends will still remain range bound, till the time we see clarity on any growth revival in 1QCY14 or election results in 2QCY14," said Rajgarhia.

The benchmark BSE index rose 1.02 percent, or 205.02 points, to end at 20,399.42, snapping a seven-day losing streak ever since hitting a record high early this month.

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