Sensex rises 1 pct on value buying, HDFC Bank share sale

MUMBAI (Reuters) - The BSE Sensex and the Nifty rose on Thursday on value buying in blue-chips after closing at their lowest in two weeks in the previous session, while a strong response to HDFC Bank's $1.6 billion share offering also bolstered sentiment for its rivals.

HDFC Bank, India's largest lender by market value, launched a share offer in the United States and India on Wednesday to raise up to $1.6 billion to raise new equity capital to meet global banking rules and also build a buffer for an expected acceleration in credit growth.

The Nifty fell 2.6 percent over four straight sessions of declines as the central bank held interest rates steady on Tuesday after easing monetary policy just three weeks earlier, leaving its next move probably until after the government's annual budget on Feb. 28.

"The earnings season would drive the markets for the next two weeks but thereafter it will start pricing in Modi's budget," said U.R. Bhat, managing director at Dalton Capital, a unit of British-based investment management firm Dalton Strategic Partnership LLP.

The Sensex and Nifty gained around 1 percent each, after marking their lowest intraday levels since Jan. 21.

Financial stocks led the gainers. HDFC Bank gained 1.7 percent while Housing Development Finance Corp rose 4.1 percent.

Axis Bank rose 3.2 percent and State bank of India gained 1 percent.

Software stocks also rose after rival Cognizant Technology Solutions forecast higher revenue growth helped by an increase in healthcare spending.

Tata Consultancy Services gained 2.4 percent, Wipro rose 3.3 percent, while Infosys gained 3.3 percent.

(Reporting by Abhishek Vishnoi; Editing by Anupama Dwivedi)