Indian shares rose on Wednesday, marking their highest close in three weeks, led by gains in resources stocks such as Coal India and Reliance Industries. Coal India climbed 5.8 percent on reports that the government has lifted the cap on the company's e-auction sales. Reliance Industries surged about 4 percent, marking its biggest daily gain since March 3.
The 30-shares BSE index rose 0.67 percent while the 50-shares NSE index gained 0.62, closing at their highest level since March 17.
Resource stocks were the top gainers on the BSE benchmark index. Bharat Petroleum Corp rose 3 percent after investment bank UBS upgraded the stock, while Reliance Industries also advanced 3.8 percent.
Banks cutting lending rates hours after a policy review in which the central bank left rates unchanged but again berated the sector for holding up transmission of changes in monetary policy to the economy also helped sentiment.
"It is futile to expect the RBI to cut rates every month. But stocks continue to be driven by liquidity," said Vijay Kedia, managing director at Kedia Securities Pvt Ltd.
He said he expects the January-March result season to be average.
Both the indexes are also heading for their fourth consecutive session on gains.
Recent laggards from IT sector also rose ahead of January/-March earnings despite worries about cross-currency head winds. Tata Consultancy Services rose 2.6 percent while Tech Mahindra gained 2.6 percent.
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