BENGALURU, Oct 4 (Reuters) - Indian shares rose 2%
on Tuesday, led by gains in banks and metal companies, as an
attempted bounce in global equities and upbeat quarterly updates
from companies lifted investor sentiment ahead of the corporate
The NSE Nifty 50 index rose 2% to 17,234.55 as of
0515 GMT and the S&P BSE Sensex gained 2% at 57,941.14.
Meanwhile, crude prices inched higher, leaving domestic
investors wary of inflation heating up in the world's
third-largest oil importing country.
Asian stocks bounced on Tuesday after Britain scrapped bits
of a controversial tax cut plan, tentatively improving global
market sentiment, rallying bonds and the pound.
The Nifty metals index and the bank index
surged 2.6%, each.
"Our markets and economy are much more resilient than the
rest of the world. It is expected that the credit growth will be
much better in the second half of the year and that's the reason
we are seeing good amount of buying in banks," said Saurabh
Jain, assistant vice-president, research, at SMC Global
IndusInd Bank shares rose 5% after it posted an
18% jump in net advances in the second quarter . It was the top
gainer in Nifty 50 index.
Shares of Mahindra and Mahindra Financial Services
surged 10% after the company reported strong disbursement for
September and improved collection efficiency.
"Earnings will be the major driver of markets for the
next few weeks, with more stock-specific moves. Banks, capital
goods and consumer companies are expected to shine more," SMC's
Foreign institutional investors (FII) turned net buyers in
the beginning of the week, purchasing 5.91 billion rupees
($72.48 million) worth of domestic equities on Monday,
provisional data available with the National Stock Exchange
FIIs sold $1.99 billion of shares last week, as per
Refinitiv Eikon data. September saw net FII equity outflows of
$903.08 million, compared with $6.44 billion of inflows in
August, according to Refinitiv.
(Reporting by Nallur Sethuraman and Gaurav Dogra in Bengaluru;
Editing by Subhranshu Sahu, Savio D'Souza and Dhanya Ann