Indian shares joined a global rally on Friday after the European Central Bank unveiled a bond-buying plan to help lower struggling euro zone countries' borrowing costs. Upbeat U.S. data on private sector jobs growth, claims for unemployment benefits and service sector growth released overnight and media reports that Beijing is accelerating infrastructure spending to bolster growth also helped lift investor sentiment ahead of U.S. employment data due out tonight.
With the turmoil-ridden monsoon session of Parliament coming to an end today, investors are waiting to see if the government will hike fuel prices next week. Shares of oil companies came under selling pressure today, with HPCL closing down 2 percent after Petroleum and Natural Gas Minister Jaipal Reddy on Friday ruled out an immediate hike in fuel prices.
Benchmark indexes Sensex and the Nifty rose about 2 percent each, with capital goods, high-beta realty, metal banking and auto stocks at the forefront amid speculation the Reserve Bank of India may ease its policy at the upcoming mid-quarter monetary policy review due on September 17.
Tata Steel, ICICI Bank, Tata Motors, Larsen & Toubro, Hindalco, Reliance Industries, Sterlite, Bajaj Auto, Infosys, Hindustan Unilever and SBI rose 2-6 percent.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org