Markets rise 1.5%; banks climb on Greek deal

Markets rise 1.5%; banks climb on Greek deal

Mumbai: Markets climbed 1.5% on Friday, powered by financials after a Greek rescue package calmed investor concerns about sovereign defaults and boosted markets across the region.

The rebound should help the main BSE index post a fourth weekly gain in the past five weeks, and fund managers are awaiting a central bank policy meeting next week for direction.

R.K. Gupta, managing director of Taurus Mutual Fund, said the market has discounted a 25 basis point rate rise at the review on Tuesday, and economists polled by Reuters this week expect another increase after July to tame inflation before a pause.

“We need to wait and watch. We need to see if there are any positives there, which can push the market higher," Gupta said.

Leading lenders State Bank of India , ICICI Bank and HDFC Bank were up between 1% and 1.8%.

The banking sector index rose 1.3% after falling more than 2% over two sessions.

European leaders on Thursday agreed to ease lending terms to Greece, Ireland and Portugal, while private investors would voluntarily swap their Greek bonds for longer maturities at lower interest rates to help Athens.

At 11:21am, the 30-share BSE index was up 1.46% at 18,705.45 points, taking gains for the week to 0.8%. All of its components advanced.

Top iron ore exporter Sesa Goa rose 0.3% after initially falling more than 4% following a 35% drop in quarterly profit due to suspension of exports from its mines in the southern state of Karnataka.

Foreign funds have been net sellers on two days this week, trimming their inflow to $2.7 billion over the past one month.

The 50-share NSE index was up 1.4% at 5,620.50.

Gainers overwhelmed losers in the ratio of 3:1 on the NSE, where 209 million shares changed hands.

The MSCI’s measure of Asian markets other than Japan and Japan’s Nikkei were up 1.2% each.


Rallis India rallied as much as 10.1% after the agrochemicals maker reported late on Thursday a 59% jump in June quarter net profit.

Reliance Broadcast rose 3.3% after a JV partner RTL Group S.A. got green signal from Foreign Investment Promotion Board for television venture to launch two thematic television channels in India.