Indian shares rose 0.55 percent on Tuesday as funds bought into index- and mid-cap stocks, snapping three straight days of losses, as the near-term outlook remained positive, dealers said. The benchmark 30-share Sensex rose 82.39 points to 14,957.91.
Institutional investors bought on bargain-hunting, after the Sensex had slipped nearly five percent in the previous three days of trading. The Sensex has now risen nearly 23 percent since the Congress party swept to election victory in mid-May with its biggest seat tally in nearly two decades. "Buying in banking and capital goods stocks took the markets in the green," said Alex Mathews, head of research of Geojit BNP Paribas Financial Services.
Gainers led losers 1,642 to 1,007 on turnover of 68.63 billion rupees (1.43 billion dollars). Banking stocks rose on news that investment bank Goldman Sachs had raised its rating on some state-run banks, on expectations of a rebound in India's economy and the financial services sector. State bank of India, rose 72.1 rupees or 4.39 percent to 1,714.1 while HDFC Bank rose 17.4 rupees or 1.14 percent to 1,547.3.
Reliance Industries fell 38.85 rupees or 1.78 percent to 2,141.6, a day after the Bombay High Court ruled against the firm's interests over a gas supply dispute with Anil Ambani's firm Reliance Natural Resources Ltd (RNRL). The court directed the Mukesh Ambani-led Reliance Industries to honour a 2005 agreement and supply 28 million cubic metres of gas per day at 2.34 dollars per million British thermal units (Btus) for 17 years.
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