Nifty snaps six-day losing streak; banks recover

The NSE Nifty rose on Thursday, heading for its first gaining session in seven, as banks and information technology stocks jumped in a broader recovery led by value buying.

Strong Asian markets, following a drumbeat of hawkish comments from major central banks signalling the era of easy money might be coming to an end, also boosted sentiment.

The MSCI’s broadest index of Asia-Pacific shares outside Japan climbed as much as 0.9 percent to hit its highest level since May 26, 2015.

But trading could turn volatile in the latter part ahead of the expiry of monthly derivatives contracts.

“Sentimentally, markets are up. We were expecting some bounceback from the 9,450 level,” said K K Mittal, Vice President at Venus India Asset Finance.

The broader Nifty was up 0.83 percent at 9,569.75 as of 0635 GMT, its biggest intraday percentage gain in over a month, while the benchmark BSE Sensex was 0.82 percent higher at 31,087.91.

Bank shares recovered, with the Nifty PSU Bank index rising as much as 1.2 percent after three consecutive sessions of losses. Canara Bank Ltd (CNBK.NS) rose as much as 3.8 percent.

Axis Bank Ltd (AXBK.NS), up as much as 4.6 percent, was the top gainer on both the indexes. The stock recorded its biggest intraday gain in over four months.

Meanwhile, software services exporters, whose shares have taken a hit this year, also advanced.

Infosys Ltd (INFY.NS) climbed as much as 2.5 percent on bargain hunting after losing for the last two sessions. The Nifty IT index rose as much as 0.8 percent.

Shares of Indian drugmaker Eris Lifesciences Ltd (ERIS.NS) rose as much as 4.2 percent on their trading debut on Thursday.

Rashtriya Chemicals and Fertilizers Ltd (RSTC.NS) fell as much as 5.4 percent after the company said on Wednesday that the government would divest 5 percent stake in the firm.