BSE Sensex set to snap three-week losing streak

MUMBAI (Reuters) - The BSE Sensex and Nifty rose on Wednesday, on track to snap a three-week losing streak, led by gains in pharmaceutical stocks such as Sun Pharmaceutical Industries and Ranbaxy Laboratories ahead of the latter's amalgamation with the former.

The benchmark indexes have so far gained 2.3 percent each for the week, also heading towards their biggest weekly gains since week ended Jan. 23, 2015.

Unwinding of short positions due to a holiday-shortened week also supported the market, traders said.

Upcoming Jan-March earnings and the Reserve Bank of India's policy review on April 7 would be the next key trigger for the market.

"The RBI may want to give at least a dovish stance, which is key, while earnings season might be a mixed bag due to weak auto numbers," said Deven Choksey, managing director at K R Choksey Securities.

The Nifty gained 0.5 percent, while the benchmark BSE Sensex rose 0.6 percent.

Pharmaceutical shares outperformed, with Sun Pharma gaining 4.3 percent and Ranbaxy Laboratories rising as much as 5.1 percent to hit an all-time high ahead of its trading suspension from April 6 due to amalgamation with Sun Pharma.

Lupin rose 1.2 percent after the company said it had launched generic exforge tablets in the United States.

Dr Reddy's Laboratories rose 0.6 percent after it said it would buy some established brands of Belgian drugmaker UCB SA in India, Nepal, Sri Lanka and Maldives for 8 billion rupees ($128.4 million).

Bank shares also gained ahead of Reserve Bank of India's policy review on April 7 where it is widely expected to keep benchmark rate unchanged after two surprise rate cuts since January.

ICICI Bank rose 1.6 percent, while Indusind Bank gained 3.7 percent.

(Reporting by Abhishek Vishnoi; Editing by Anand Basu)