BENGALURU, Jan 19 (Reuters) – Indian shares rose on Friday after a three-day losing streak, led by a rebound in financials and information technology stocks.
The blue-chip index NSE Nifty 50, opens new tab rose 0.91% to 21,657.45 points, while the S&P BSE Sensex, opens new tab gained 0.91% to 71,835, as of 10:30 a.m. IST.
Both the benchmarks had shed nearly 3% in the last three sessions, with the bulk of the decline led by top private lender HDFC Bank, opens new tab after it posted weak third-quarter margins.
Shares of HDFC Bank, which slumped about 11.5% over the last two sessions, gained 0.5%, on the day. Led by
The financial services index, opens new tab advanced 1.2%.
Private lender ICICI Bank, opens new tab climbed 2.2% ahead of its results on Saturday. Axis Bank, opens new tab, scheduled to announce its earnings on Tuesday, added 2.5%.
IT stocks, opens new tab rose 0.9% after U.S. labour market data showed resilience, bolstering hopes of a soft landing for the world’s largest economy. IT companies earn a significant share of their revenue from the U.S.
“While the resilience in U.S. economy could delay a Federal Reserve rate cut, the rising probability of a soft landing implies that the worst is probably over for IT sector,” said Mayuresh Joshi, head of equity research India at William O’Neil and Company.
The outlook for Indian markets is positive, but the near-term trajectory will be driven by earnings, Joshi added.
Among individual stocks, Titan Company, opens new tab added 2% after CLSA raised its target price. CLSA sees gains for Titan from the robust pricing power of Tanishq brand.
Poonawalla Fincorp, opens new tab advanced 3%. The non-bank lender reported 76.3% year-on-year growth in net profit in December quarter.
Investors are also awaiting the results of the oil-to-telecom conglomerate Reliance Industries, opens new tab, due post market hours on Friday. The second-heaviest Nifty 50 stock declined 0.33%.