BSE Sensex gains more than 300 points; banks rally

Reuters Market Eye - The BSE Sensex gained over 1 percent on Thursday, recovering from an oversold state after seven consecutive days of declines on easing fears of near-term tapering by the U.S. Federal Reserve while domestic bonds gained on RBI's open market operations announcement.

The BSE Sensex is up 1.37 percent while the broader Nifty gains 1.37 percent, retracing from over a month closing low made on Wednesday.

Shares in state-owned banks rally tracking gains in benchmark bonds after Reserve Bank of India governor Raghuram Rajan said it will buy bonds worth 80 billion rupees via open market operations (OMO) on Monday.

 

State Bank of India gains 1.9 percent, Canara Bank Ltd rises 3 percent, while Bank of India Ltd is up 5.1 percent.

Tata Steel Ltd shares up 2.9 percent after the company's second-quarter profit beat expectations on Wednesday, helped by a rise in prices and market share at home.

Natco Pharma Ltd surge 6 percent after prospects for its generic version for Teva Pharmaceutical Industries' TEVA.TA billion dollar drug got a boost from a favourable U.S. court ruling on Wednesday.

(Reporting by Abhishek Vishnoi)