Banks power Indian stock gains

Last Updated: Wed, Mar 14, 2012 09:19 hrs

A rally in banks helped push Indian shares toward their fourth consecutive winning session as the pick-up in inflation data out on Wednesday was not seen as big enough to completely rule out the chances of a rate cut from the RBI.

Also helping gains were expectations the federal budget to be unveiled on Friday could contain beneficial measures to the sector, including making provisions on non-performing loans tax deductible, according to an analyst at a major foreign brokerage.

Derivatives data suggest there has been fresh long positions taken on Wednesday in ICICI Bank , State bank of India and Axis Bank , derivatives dealers said.

The main 30-share BSE index gained 0.5 percent to 17,908 points, its highest intraday high since February 29. The 50-share index advanced 0.5 percent

The shares of State Bank of India were up 1 percent, while ICICI Bank were up 2.3 percent and Axis bank shares traded higher up 3.1 percent.

More from Sify: