* BSE index gains 1.86 pct; NSE ends 1.92 pct higher
* Reliance Industries gains on reserve hopes
* Apollo Tyres fails to stem stock slide on Cooper deal
By Abhishek Vishnoi
MUMBAI, June 14 Indian shares snapped a
three-session losing streak to gain nearly 2 percent on Friday,
after Reliance Industries surged on hopes one of its blocks held
higher gas reserves while lenders rallied after easing wholesale
inflation raised hopes of a rate cut.
Shares also tracked a rally in Asian markets following a
bruising selloff in global markets, which had sent the Indian
rupee to record lows and helped push the benchmark BSE
index down 1.3 percent for the week.
Investors are now looking ahead at the Reserve Bank of
India's policy review on Monday as the next key trigger, along
with movements in global markets.
Although most analysts expect the central bank to keep rates
on hold, an outside chance was seen after India's headline
inflation slowed for a fourth straight month in May to 4.7
percent from a year earlier.
"The RBI meeting on Monday will be an important trigger for
the market. Expectations are mixed on whether the RBI will cut
rates or not," said Dipen Shah, head of Private Client Group
Research, Kotak Securities.
Markets are pricing in some roll-back of stimulus by the
U.S. Federal Reserve as well, but if it maintains status-quo,
there can be further respite to the markets, added Shah.
The benchmark BSE index rose 1.86 percent, or
350.77 points, to end at 19,177.93, marking its biggest
single-day gain since May 15, although it was not enough to
prevent the index from posting its second consecutive weekly
The broader NSE index rose 1.92 percent, or 109.30
points, to end at 5,808.40, closing above the psychologically
important 5,800 level but 1.2 percent lower for the week.
Reliance Industries Ltd gained 3.2 percent after
its KG-D6 block partner Niko Resources Ltd said its
proved reserves increased by 160 percent, and that a recent gas
discovery in the D6 block off India's east coast could add
significantly to future reserves.
Lenders rallied after easing wholesale inflation raised rate
cut hopes. The NSE banking index fell 2.5 percent for
the week, a fourth consecutive weekly drop.
ICICI Bank Ltd gained 3.1 percent and Axis Bank
Ltd rose 2.2 percent.
Tata Motors Ltd gained 4.9 percent ahead of unit
Jaguar Land Rover Ltd's global wholesale numbers
expected later in the day.
Tata Coffee Ltd climbed 6.3 percent on value
buying after falling 25 percent in previous two sessions.
Maruti Suzuki India Ltd shares rose 4 percent on
value buying after falling about 8 percent in the last five
sessions. Traders also say the yen looks overbought
versus the dollar in the short term and therefore may weaken,
generating a tactical buy call on Maruti.
However, among stocks that fell, Apollo Tyres Ltd
fell 5.5 percent, losing about a third of its market value over
two days as investors fretted over the debt it will take on to
fund its $2.5-billion acquisition of U.S.-based Cooper Tire &
For additional stocks on the move double click
FACTORS TO WATCH
* Dollar weak but rising stocks provide some support
* Brent slips on ample U.S. inventory, weak outlook
* Shares, dollar steady after sharp selloff
* Foreign institutional investor flows
* For closing rates of Indian ADRs
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia........ Japan....... S.Korea...
S.E. Asia....... Hong Kong... Taiwan....
Australia/NZ.... India....... China.....
Wall Street .... Gold ....... Currency..
Eurostocks..... Oil ........ JP bonds...
ADR Report ..... LME metals. US bonds..
Stocks News US.. Stocks News Europe
DIARIES & DATA:
Indian Data Watch Asia earnings diary
U.S. earnings diary European diary
Indian diary Wall Street Week Ahead
Eurostocks Week Ahead
For top Asian company news, double click on:
U.S. company news European company news
Forex news Global Economy news
Technology news Telecoms news
Media news Banking news
Politics/General Asia Macro data <ECONASIA
(Editing by Jijo Jacob)