The BSE Sensex and Nifty gained nearly 1.7 per cent each on gains in PSU banking stocks and bluechips like L&T and NMDC. Higher global markets also aided sentiment. (Track stocks)
Overseas investors bought Indian shares worth Rs 2,977 crore ($503.8 million) on Friday, which includes about $364 million (nearly Rs 2,150 crore) from the Canada Pension Plan Investment Board increasing its stake in Kotak Mahindra Bank, provisional exchange data shows. The net purchases mark their first after selling in five out of six sessions.
CNX PSU Bank index rose close to 4 per cent on reports that the government would consider selling some of its holdings and inject capital in some PSU banks. Reports citing sources said the government was "seriously working" on a plan to transfer its equity in public sector banks to a holding company.
(See: State-run banks gain on hopes of government measures)
State Bank of India gained 3.3 per cent, Canara Bank surged 5.8 per cent, while Bank of India rose 3.7 per cent.
Market analyst Sanjeev Bhasin says Nifty has support at 7250-7300 and the RBI could surprise tomorrow with a 25 bps repo rate cut. Mr Bhasin sees Nifty hitting 7400 this week.
Larsen & Toubro gained 6.3 per cent after the engineering company's fourth-quarter profit beat analyst forecasts.
(See: L&T Soars to 52-Week High on Q4, Optimistic Outlook)
NMDC gained 4 per cent after the miner said on Friday its January-March profit rose by 34 per cent to Rs 1,962 crore.
(See: NMDC Surges As Q4 Net Profit Rises 34%)
HDFC Bank gained nearly 3 per cent, while Hindustan Unilever fell over 2 per cent as changes by MSCI to its global indices became effective after the close of markets on Friday.
At 1:30 p.m., the Sensex was up 413 points to 24,630 while Nifty rose 122 points to 7,352. (With Agency Inputs)
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