INDIA STOCKS-Financials aid rise in Indian shares; Adani stocks cap gains

(Updates levels, adds analysts' comments) BENGALURU, Feb 3 (Reuters) - Indian shares rose on Friday, aided by rise in financials and optimism that the rate hike cycle may be near its end after global central banks hinted at inflation easing, while the ongoing rout in Adani group stock capped gains. The Nifty 50 index rose 0.14% to 17,634.10, while the S&P BSE Sensex climbed 0.42% to 60,197.12, as of 10:50 a.m. IST. High weightage financials rose nearly 1% 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.

Nineteen of the Nifty 50 stocks rose with Titan , IndusInd Bank , Bajaj Finance , HDFC Bank and SBI Life among the top gainers. Adani stocks declined, extending the ongoing selloff in the conglomerate's stocks which has caused a rout of over $100 billion in market capitalisation after the Hindenburg report on Jan. 24, keeping a lid on the upbeat mood. Adani Enterprises and Adani Ports were the top losers on Nifty 50 index. The Adani saga could continue to hurt the sentiment in the market, three analysts said. 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))

Reuters

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

off-the-wire

INDIA STOCKS-Financials aid rise in Indian shares; Adani stocks cap gains

By Reuters

Reuters

Reuters

Gold is never going back to $2,000: 'That's history,' prices to 3x from here – Peter Schiff

‘Biggest economic shift since Nixon’: Major U.S. monetary policy changes coming in 12-36 months – Jack Mallers

India joins South Africa in denying BRICS currency plans after Trump’s 100% tariff threat

Solid price gains for gold, silver after busy news weekend

Bitcoin remains a ‘speculative vehicle’ and ‘won’t work’ as a reserve: ‘I prefer gold’ – Ray Dalio