Mumbai: Indian stocks advanced, rebounding from a five-day slide, led by financial companies and developers after the central bank raised interest rates in line with economists' forecasts.
State Bank of India, the nation's largest lender, and DLF, the biggest developer, gained at least 2.9 per cent. The Reserve Bank of India added a quarter percentage point to benchmark interest rates and the cash reserve ratio, meeting the median forecasts of 30 economists.
"Since the government is all for ensuring continued growth, the stock market is responding favourably," said Deven Choksey, chief executive officer of K.R. Choksey Shares & Securities. "We have been using any drop in the market to buy."
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 59.9, or 0.3 per cent, to 17,460.58. The gauge had declined 3 per cent over the previous five trading sessions amid predictions rates would rise. The S&P CNX Nifty Index on the National Stock Exchange rose 0.5 per cent to 5,230.1. The BSE 200 Index increased 0.7 per cent to 2,206.34.
Gainers
State Bank climbed 3.2 per cent to Rs2,098.35. ICICI Bank, the second-biggest lender, rose 1.4 per cent to Rs933. Axis Bank, the fourth-largest lender by market value, gained 2.4 per cent to Rs1,187 after it said its full-year profit climbed to Rs25.2 billion (Dh2.1 billion) from Rs18.2 billion a year earlier, according to a statement filed to the National Stock Exchange.
