(Updates levels, adds analysts' comments)
By Bharath Rajeswaran
BENGALURU, March 29 (Reuters) - Financials led a rally
in Indian shares on Wednesday, mirroring the rise in their Asian
peers as easing worries over the global banking turmoil whet
risk appetite, while Adani group stocks rebounded.
The Nifty 50 index was up 0.41% at 17,019.95 as of
11:03 a.m. IST. The S&P BSE Sensex rose 0.31% to
57,799.75.
Twelve of the 13 major sectoral indexes advanced. The
heavyweight financials index rising 0.8%, with Bajaj
Finance , Bajaj Finserv , HDFC and
HDFC Bank were among the top gainers.
"The recent correction in the market has made valuations
more palatable," brokerage Jefferies said in a note.
The Nifty 50 has fallen more than 2% since the collapse of
Silicon Valley Bank in mid-March, while the financials index has
lost 0.58%.
In that period, the broader market has not been able to
stitch a winning run of more than two consecutive days and
analysts expect the choppiness to continue in the near term due
to a liquidity crunch and lack of immediate triggers.
"Most of the large HNIs (high net worth individuals) and
PMSs (portfolio management services) are stuck at higher levels.
The overhang will continue for some time as there is no fresh
buying trigger," said Avinash Gorakshakar, head of research at
Profitmart Securities.
Nearer term, analysts expect the monthly expiry of the March
derivatives series to lead to elevated volatility.
Among stocks, most Adani group companies gained after a drop
on Tuesday following a report that said the conglomerate was
seeking to renegotiate debt, which the group refuted.
Adani Enterprises and Adani Ports rose
about 5% each and were among the top Nifty 50 gainers.
Joining them was Mahindra and Mahindra , which
jumped nearly 2% after ICICI Securities upgraded the stock to
"buy".
Bajaj Auto jumped over 1% after JP Morgan
reiterated its "overweight" rating on the stock.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Dhanya Ann Thoppil and Savio D'Souza)
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