March 14, 2012 / 9:03 AM / 6 years ago

Banks power Indian stock gains

Brokers trade at a stock brokerage firm in Mumbai July 9, 2008. REUTERS/Arko Datta/Files

Reuters Market Eye - 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 (ICBK.NS), State bank of India (SBI.NS) and Axis Bank (AXBK.NS), 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.

Reporting by Abhishek Vishnoi and Manoj Dharra; Editing by Rafael Nam

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