* NSE index up 1.14 pct, BSE index 1.2 pct higher
* Nifty bank index rises nearly 2 pct
* Weak US retail sales data crimps Fed hike chances
Sept 16 Indian shares rose over 1 percent on
Friday, heading for their third straight session of gains, in
line with Asian markets as lacklustre U.S. retail sales data
reduced already low chances of an interest rate hike by the
Federal Reserve next week.
Sentiment also got a boost from data showing India's trade
deficit narrowed slightly in August, a move that will strengthen
the government's case for rejecting exporters' calls for a
competitive boost through a rupee devaluation.
"Markets are recovering from losses earlier in the week...
with heavy investments made in large caps in recent times as far
as allocation of new funds are concerned," said Deven Choksey,
managing director at KR Choksey Securities.
Investors now await the policy meetings of the U.S. Fed and
the Bank of Japan next week for cues on monetary policies.
The broader NSE index was up 1.14 percent at
8,842.25 as of 0549 GMT after rising as much as 1.20 percent
earlier in the session, while the benchmark BSE index
was 1.2 percent higher at 28,749.14.
Both indexes looked set to post their first weekly loss in
Among the gainers, bank stocks recovered from the previous
session's losses, with the Nifty Bank Index climbing
nearly 2 percent.
State Bank of India rose 2.1 percent, ICICI Bank
gained 1.4 percent, while Axis Bank climbed
Shares of state-run oil refiners also rose on hike in petrol
prices. Bharat Petroleum Corp Ltd rose 1.5 percent,
while Hindustan Petroleum Corp Ltd gained 1.8 percent.
(Reporting by Samantha Kareen Nair in Bengaluru; Editing by