* NSE index up 0.6 pct, BSE index 0.7 pct higher
* HDFC surges after RBI removes it from FII ban list
* Nifty Bank index rises up to 4 pct to hit record high
By Tanvi Mehta
Feb 17 (Reuters) - Indian shares rose about 1.5 percent on
Friday, heading for their fourth straight weekly gain, driven by
financials after the central bank allowed foreign investors to
resume buying in HDFC Bank Ltd.
Shares of HDFC Bank rose as much as 9.5 pct to a record high
of 1,454 rupees, after the Reserve Bank of India removed the
bank from the ban list for foreign institutional investors'
buying as aggregate foreign shareholding in the bank fell below
the prescribed limit under the foreign direct investment policy.
"Some consolidation was due in the market and that's what
the market has been doing... Don't think the market will give
way easily," said Neeraj Dewan, director at Quantum Securities.
HDFC Bank shares were up 6.8 percent at 0600 GMT, paring
gains on some profit-taking.
The broader NSE index was up 0.6 percent at 8,827.8
as of 609 GMT, after rising as much as 1.4 percent to its
highest since Sept. 9, 2016 in early trade.
The benchmark BSE index was 0.7 percent higher at
28,505.11, with financials contributing nearly 220 points to the
index. Earlier in the day, the index rose as much as 1.5 percent
to its highest since Sept. 23, 2016.
Financials surged with the Nifty Bank index
rising as much as 4 percent to a record high while both the
Nifty Private Bank index and the Nifty Financial
Services index gained over 3.5 percent to hit
Pharma stocks also rose with Sun Pharmaceutical Industries
among top percentage gainers.
Meanwhile, the operator of the NSE index said on
Thursday it would add Indian Oil Corp and Indiabulls
Housing Finance as new constituents from March 31 and
drop Idea Cellular Ltd and Bharat Heavy Electricals
Idea Cellular fell 3 percent while BHEL was down more than 1
(Reporting by Tanvi Mehta in Bengaluru; Editing by Subhranshu