Sensex set to end three-week losing streak

MUMBAI (Reuters) - Indian stocks rose over 1 percent on Friday, on track to end a three-week losing streak as a rebound in commodity prices and Bank of Japan's (BoJ) bold move to adopt negative interest rates to stimulate the Japanese economy stoked global risk appetite for equities.

Asian markets gained between 1 percent and 3 percent as BoJ's move surprised investors, most of whom had believed Japanese policymakers were too cautious to ever adopt such a radical measure.

The rally also got legs from global oil prices that were trading above $34 a barrel and heading towards their second weekly gain.

"Oil prices have recovered 20 percent from their lows and metal prices have firmed up supporting the market," said G Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.

The Nifty rose as much as 1.45 percent to its highest level since Jan. 15. The index is set to gain 1.4 percent for the week.

However, it has shed about 5.2 percent in January, its worst monthly performance since August 2015.

The Sensex gained as much as 1.28 percent. The index is set to gain about 1.39 percent for the week, but is on track to lose about 5.1 percent for the month.

Gains were led by blue-chip stocks such as Reliance, Housing Development Finance Corp and Infosys

Yes Bank surged 7 percent after the lender reported a better-than-expected 25 percent increase in quarterly profit.

Vedanta was trading 6.3 percent higher despite reporting a 99 percent fall in profit after the mining company said it was making efforts to cut costs aggressively.

Larsen & Toubro was trading 2 percent higher ahead of reporting results due later in the day.

Among the stocks that fell, ICICI Bank tumbled 3.45 percent, Maruti Suzuki fell 0.9 percent, while Bharti Airtel was down 0.45 percent all on the back of reporting disappointing earnings after market close on Thursday.

(Reporting by Karen Rebelo in Mumbai; Editing by Anand Basu)