The BSE Sensex and Nifty extended gains, led by lenders such as State Bank of India as investors bet on an interest rate cut from the Reserve Bank of India (RBI) after industrial output data was much weaker than expected.
The BSE Sensex and Nifty extended gains, led by lenders such as State Bank of India
Bank stocks were also helped as inter-bank call money rate fell on Thursday, indicating some hopes for improved liquidity in a sector facing an acute cash crunch.
Though banks would benefit more directly from a cut in the cash reserve ratio, lowering India's main lending rate could improve growth prospects, helping a sector clamouring for relief either in liquidity or in bolstering the economy, analysts said
State Bank of India rose 2.9%, while ICICI Bank
India's main BSE index rose 1%, while the NSE index added 1.05%.
Industrial production grew at a slower-than-expected 4.1% pace in February from a year earlier, weighed down by a contraction in consumer durables and consumer goods.