Sensex higher; banks gain, IT shares take a breather

Reuters Market Eye - The BSE Sensex gains 0.18 percent while the Nifty is up 0.14 percent. Bank shares lead the gains on sector rotation from IT stocks ahead of a monetary policy review on January 28 and rising bond prices, dealers say.

ICICI Bank gains 2.1 percent while HDFC Bank rises 0.7 percent.

Tata Consultancy Services Ltd falls 2 percent while Wipro Ltd is flat.

IT stocks (or the IT index on the NSE) have risen 68 percent since 2012 end while the Bank Nifty is down 11 percent in the same period.

For graphic, click http://link.reuters.com/jet26v

Government bonds rose to three-month highs on Tuesday on a report quoting an unnamed finance ministry official as saying that the fiscal year borrowing may be less than earlier budgeted if fiscal deficit is kept in check.

 

(Reporting by Abhishek Vishnoi)