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Sensex rebounds as lenders gain


By Jessica Kuruthukulangara

(Reuters) - Indian bounced back after two days of losses on Thursday, led by lenders such as State of on expectations that the would soon reveal details of a recapitalisation plan.

Reserve of Governor Urjit Patel said on Wednesday the would "in coming days" detail how it plans to inject an announced $32 billion into state-run lenders, which was announced in October.

Meanwhile, an RBI order mandating banks to lower the merchant discount rate they charge on debit cards did not affect sentiment.

However, broader gains were capped ahead of elections in the western state of Gujarat due this weekend, in a critical test for Prime Minister Modi.

Polls indicate a victory for the ruling Bharatiya Janata Party (BJP), but with a greatly reduced majority. Results are due later this month.

"Today is largely seen as a corrective recovery in the market because it had gone into an oversold territory," said Deven Choksey, promoter, KR Choksey.

"will now look out for the Gujarat election outcome. There may be some recovery in the ahead of the earnings season and the budget next month," he added.

The broader NSE was up 0.61 percent at 10,105.55 as of 0638 GMT, while the benchmark BSE was 0.54 percent higher at 32,773.60.

The indexes had fallen in six of the previous seven sessions.

The PSU index gained as much as 1.6 percent, with State of and of Baroda Ltd rising more than 1 percent each.

GAIL (India) Ltd, the top gainer on the NSE index, rose as much as 5.1 percent to a record high.

IRB Infrastructure Developers Ltd slid as much as 6.1 percent after the company said the Central Bureau of Investigation has filed charges against it over alleged illegal purchases of land.

(Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Vyas Mohan)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 07 2017. 12:45 IST