Sensex rises but on track to end the week lower

MUMBAI (Reuters) - India's stock markets rose nearly 1 percent on Friday as state-owned lenders such as State Bank of India recovered from recent sharp losses, but indexes were still headed for a fourth weekly loss in five highlighting fragility in sentiment.

The Nifty was down 1.3 percent for the week after a fall in crude prices hit sentiment and after the Reserve Bank of India (RBI) kept interest rates unchanged on Tuesday.

But traders said they looked forward to a week-long holiday in China next week, given that it removes a potential source of selling pressure. Worries about the world's second largest economy have hit global markets this year.

 

"We were deeply oversold," said Hemen Kapadia, senior vice president, K R Choksey Securities.

"China on holiday next week aids sentiment."

The NSE Nifty was up 0.7 percent.

The benchmark BSE Sensex was higher 0.7 percent, but was headed for a 1.4 percent weekly fall.

Public sector banks were among the leading gainers after recent falls. SBI rose 2.1 percent after falling 12.1 percent over the last five trading sessions.

PNB has risen more than 5 percent in the past three trading sessions after falling more than 22 percent this year.

Tata Power gained as much as 2.46 percent on optimism about its earnings due out later in the day. StarMine Smart Estimates suggest net income may beat consensus.

Metal stocks such as Tata Steel and Jindal Steel gained after CNBC-TV 18 reported the government was likely to set minimum import price on steel imports, citing unidentified sources.

(Reporting by Manoj Rawal; Editing by Subhranshu Sahu)