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Indian Markets Higher On Global Cues

Indian shares rose on Wednesday, led by gains in rate-sensitive auto and realty stocks after the Lok Sabha cleared the contentious banking bill, paving the way for the RBI to issue new bank licenses.

Global cues also remain supportive, with Asian stocks trading broadly higher on fiscal cliff hopes and as ratings agency Standard & Poor's raised Greece's credit rating from selective default. Japan's Nikkei index is rallying 1.6 percent, breaching the 10,000 mark for the first time since April, as the Bank of Japan begins its two-day policy meeting. The benchmark BSE Sensex and the broader Nifty index are currently up about 0.6 percent each.

Among the prominent gainers in the Nifty pack, Sun Pharma, Tata Steel, DLF, Jindal Steel, TCS, Coal India, ONGC, Tata Motors, IDFC and Maruti Suzuki are up 1-2 percent. Among the major banks, SBI is up 0.7 percent and HDFC Bank is adding a percent, but shares of ICICI Bank are subdued.

ONGC is up nearly 2 percent after Russia's Rosneft invited its overseas investment arm to participate jointly in the exploration of two blocks in the Sea of Okhotsk in eastern Russia. Tata Motors is moving up 1.2 percent as it launched a new variant of its crossover vehicle Tata Aria with a bouquet of features. Reliance Power is up 0.8 percent ahead of its 'offer for sale' on the bourses.

Eros International Media is gaining 1.2 percent after its subsidiary, Eros Worldwide, proposed to sell 2.57 million shares representing 2.8 percent of its holding in the film distribution company on December 20 in order to meet the minimum public shareholding requirement.

Mahindra & Mahindra Financial Services is adding 1.8 percent on stock-split news and on expectations it would apply for a new banking license. L&T Finance Holdings, IDFC and Shriram Transport Finance are up 2-3 percent.

Kingfisher is tumbling 3.2 percent after aviation minister Ajit Singh said the debt-laden airline must satisfy regulator DGCA with a credible revival plan to get its license renewed. Gujarat Fluorochemicals is losing 2 percent and Suzlon Energy is declining 0.8 percent after the National Stock Exchange removed them from the futures & options segment.

Indian shares reversed early losses on Tuesday as expectations that the banking amendment Bill will be passed in Parliament outweighed disappointment from RBI which maintained status quo on key policy rates. The BSE Sensex and the broader Nifty index rose 0.6 percent and 0.7 percent, respectively.

by RTTNews Staff Writer

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