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Indian stocks rise on value buying, HDFC Bank's $1.6 bln share sale
February 5, 2015 / 7:49 AM / 3 years ago

Indian stocks rise on value buying, HDFC Bank's $1.6 bln share sale

* Oh BSE index gains 0.37 pct; NSE index up 0.36 pct

* Financial stocks lead gainers post HDFC Bank share sale

* IT stocks gain on rival Cognizant’s strong guidance

MUMBAI, Feb 5 (Reuters) - Indian shares rose on Thursday on value buying in blue-chips after closing at their lowest in two weeks in the previous session, while a strong response to HDFC Bank’s $1.6 billion share offering also bolstered sentiment for its rivals.

HDFC Bank, India’s largest lender by market value, launched a share offer in the United States and India on Wednesday to raise up to $1.6 billion to raise new equity capital to meet global banking rules and also build a buffer for an expected acceleration in credit growth.

India’s NSE index fell 2.6 percent over four straight sessions of declines as the central bank held interest rates steady on Tuesday after easing monetary policy just three weeks earlier, leaving its next move probably until after the government’s annual budget on Feb. 28.

“The earnings season would drive the markets for the next two weeks but thereafter it will start pricing in Modi’s budget,” said U.R. Bhat, managing director at Dalton Capital, a unit of British-based investment management firm Dalton Strategic Partnership LLP.

The benchmark BSE index gained 0.37 percent, while the broader NSE index rose 0.36 percent, after marking their lowest intraday levels since Jan. 21.

Financial stocks led the gainers. HDFC Bank gained 1.1 percent while Housing Development Finance Corp rose 2.8 percent.

Axis Bank rose 2.4 percent and State bank of India gained 0.6 percent.

Software stocks also rose after rival Cognizant Technology Solutions forecast higher revenue growth helped by an increase in healthcare spending.

Tata Consultancy Services gained 1.4 percent, Wipro rose 2.5 percent, while Infosys gained 1.7 percent.

For stocks on the move, see (Reporting by Abhishek Vishnoi; Editing by Anupama Dwivedi)

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