High weightage financials rose over 2.3%
ahead of earnings of the country's largest lender State Bank of
India and after clarification from life insurers SBI
Life and HDFC Life , addressing investor
concerns regarding the latest budget proposals.
"Financials are likely to outperform the benchmarks, due
to strong fundamentals and SBI is expected to deliver strong Q3
numbers," said Narendra Solanki, head of equity research at
Anand Rathi Shares & Stock Brokers.
The clarification from life insurance companies has averted a knee-jerk reaction in the markets due to the budgetary announcement, Solanki added.
Insurance stocks declined over the previous two sessions
after the budget proposed taxing returns upon maturity of life
insurance policy with aggregate premium above 500,000 rupees a
year. SBI Life and HDFC Life, on Thursday, said the impact due
to the budgetary proposal would be insignificant.
Thirty-six of the Nifty 50 stocks rose with Adani Ports, Titan among the top gainers. Key Adani stocks, including the Nifty 50 constituents Adani Enterprises and Adani Ports advanced after the recent selloff in the conglomerate's stocks which has caused a rout of over $100 billion in market capitalisation following the Hindenburg report on Jan. 24. The Adani saga has hurt the sentiment in the market, three analysts said, adding that markets could be volatile over the next few sessions until clarity emerges on the conglomerate.
The rise in domestic equities is also spurred by dovish
comments from global centrals banks over the last two sessions.
The Reserve Bank of India is expected to raise the key policy repo rate by 25 bps at its policy meeting on Feb. 8, beginning the end of almost a year-long tightening cycle.
($1 = 82.0940 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman and Dhanya Ann Thoppil)
+919769003463))