BENGALURU, Oct 4 (Reuters) - Indian shares rose over
2% on Tuesday, boosted by a surge in banks, metal and
information technology companies, while upbeat quarterly updates
from companies lifted investor sentiment ahead of the corporate
The NSE Nifty 50 index rose 2.3% to 17,274.30, while
the S&P BSE Sensex gained 2.3% to 58,065.47. The
indexes saw their sharpest one-day gain since Aug. 30.
Global stocks climbed for a second day on Tuesday, adding
heft to the rally in Indian markets.
Heavyweight Nifty bank index rose 2.8%, while the
metals index and IT index surged 3.1% and
"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 added 5.5% 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 12% after the company reported strong loan disbursement
and improved collection efficiency in September.
"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.
India's equity and money markets will be closed for a
holiday on Wednesday.
(Reporting by Nallur Sethuraman and Gaurav Dogra in Bengaluru;
Editing by Subhranshu Sahu, Savio D'Souza and Dhanya Ann