By Bharath Rajeswaran
(Reuters) -India’s equity benchmarks edged higher on Tuesday, rebounding after their longest losing streak in nearly seven months, as heavyweight financial stocks rose after lending norms were eased and metal firms gained on a weaker dollar.
The Nifty 50 was up 0.18% at 24,677.9, while the BSE Sensex added 0.14% to 80,469.39, as of 10:02 a.m. IST. The indexes rose about 0.4% each in early trade after falling about 3.1% in the last seven sessions.
Eleven of the 16 major sectors logged gains. The broader small-caps and mid-caps gained 0.5% and 0.2%, respectively.
High-weight financials and private banks both gained 0.2%. Banks advanced 0.5% while public sector banks rose 1.8%.
The rise comes after the Reserve Bank of India eased lending norms while tightening oversight on lenders.
“RBI’s move improves rate transmission, broadens gold-based lending and relaxes capital norms, which can aid credit flow and capital access,” ICICI Direct said in a note.
The central bank’s monetary policy decision is due on Wednesday. Nearly three-quarters of economists in a Reuters poll expect rates to remain unchanged.
Metals advanced 1%, supported by a weaker dollar and concerns over global supply. A weak dollar makes metals cheaper for holders of other currencies. [MET/L]
Coforge rose 2.6%, boosting IT index 0.5% higher, after CLSA initiated coverage on the shares with an “outperform” rating, citing improving earnings outlook and stellar execution.
“We believe oversold positions after the recent sell-off may now lead to some consolidation in the Nifty 50, with strong support around the 24,400-24,500 zone,” said Ajit Mishra, senior vice president of research at Religare Broking.
However, foreign selling amounting to $2.55 billion this month and caution ahead of the central bank policy may continue to cap gains, Mishra said.
Among individual stocks, Man Industries tumbled 8% after the markets regulator barred the company and its key executives from the securities market for alleged fund diversion.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng and Mrigank Dhaniwala)
