Reliance, financials lead rise in Indian shares
Indian equities rose for a third straight session on Thursday, driven by gains in shares of Reliance Industries and in sectors such as financials and metals, as easing Israel-Iran tensions bolstered risk appetite.
The Nifty 50 rose 1.21% to 25,549, and the BSE Sensex gained 1.21% to 83,755.87, building on a 1% rally over the previous two sessions to hit nine-month highs.
The two main indexes are about 3% below their all-time highs hit on September 2024. So far this year, the Nifty 50 and the Sensex have risen about 8% and 7%, respectively.
Eleven of the 13 major sectors rose on the day.
Financials led the charge on Thursday, with private lenders HDFC Bank and ICICI Bank rising 2% and 1%, respectively, lifting the Nifty Financial Services index by 1.5%.
Prospects of lower funding costs and robust domestic GDP growth are boosting sentiment for bank stocks, analysts said. Buzz around the IPO of HDFC Bank's subsidiary, HDB Financial Services, is also lending support to the private lender's shares.
Reliance Industries climbed about 2%, extending its two-day gains to 3% after analysts projected robust earnings growth in the June quarter.
The market tone is steadily improving as geopolitical clouds clear, spurring a steady rise in the last three sessions, said Vaishali Parekh, vice president of technical research at PL Capital.
Metal index added 2.3%, helped by a weaker U.S. dollar, which makes the greenback-denominated assets more affordable to holders of other currencies.
The dollar slid after U.S. President Donald Trump rattled markets again with an attack on the U.S. Federal Reserve chair that revived worries over the central bank's independence.
Broader markets also rose, with small-caps and mid-caps gaining 0.4% and 0.6%, respectively.
Other major Asian and European markets also rose on Thursday.
Among key movers, Bajaj Finance, Shriram Finance, and Cholamandalam Investment rose after Jefferies reaffirmed them as top picks among non-bank lenders.
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