(Updates closing levels, adds analysts' comments)
By Bharath Rajeswaran
BENGALURU, March 17 (Reuters) - Indian shares rose on
Friday, tracking the rebound in global equities after
authorities took a slew of measures to support the global
banking system, whetting risk appetite.
The Nifty 50 index closed 0.67% higher at 17,100.05,
while the S&P BSE Sensex finished 0.62% higher at
57,989.90.
However, both indexes posted losses of nearly 2% for the
week, their biggest such drop in nearly a month, chiefly due to
steep declines earlier in the week after the collapse of Silicon
Valley Bank and Signature Bank.
The fallout of those closures threatened to spill over more
broadly, with U.S. regional lender First Republic Bank and Swiss lender Credit Suisse the new focal points
before an infusion of funds helped stave off a crisis and pushed
global stocks higher. "The measures inspire confidence in financials in the near
term," said Dipan Mehta, director of Elixir Equities, but warned
of "a potential contagion effect across financials".
Still, Indian bank stocks rose over 1% on the
day. Overall, nine of the 13 major sectoral indices logged
gains, with information technology (IT) stocks also
up 1%.
Regional U.S. banks account for about 2%-3% of revenue at
TCS and Infosys , the highest in the IT
sector, J.P. Morgan said.
Further, investors are increasingly expecting the Federal
Reserve to go easy on rate hikes, which led to SVB's collapse,
and that bodes well for spending among IT firms' U.S. clients.
"The Fed needs to manage a delicate balancing act between
price stability and financial stability, with a likely 25
basis-point hike next week," said Aishvarya Dadheech, fund
manager at Ambit Asset Management.
TCS shares ended 0.18% lower after CEO Rajesh
Gopinathan unexpectedly resigned, though analysts expect a
smooth transition.
Index heavyweights HDFC and HDFC Bank rose roughly 1.3% each after a report said the National Company
Law Tribunal had approved their merger.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio
D'Souza)
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