Indian shares rose 3.81 percent on Wednesday on hopes of a rate cut by India's central bank as inflationary pressures ease, dealers said. The benchmark 30-share Sensex rose 331.19 points to 9,026.72, following two days of losses. Official annual inflation data is due Thursday.
"The markets were oversold. Banking stocks rose on expectations that the RBI will lower rates soon," said Atul Hatwar, dealer with brokerage Crosseas Securities. On the market Wednesday, losers led gainers 1,222 to 938 on volume of 32.23 billion rupees (646 million dollars). Overseas funds have been net sellers of Indian stocks for the year, having sold more than 13.46 billion dollars, official data showed last week.
ICICI Bank rose 30.55 rupees or 9.55 percent to 350.55, while Reliance Industries rose 65.5 rupees or 6.11 percent to 1,137.2. DLF rose 10.4 rupees or 5.53 percent to 1,058.85.
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