* NSE index up 0.51 pct, BSE index 0.58 pct higher
* IndusInd Bank up 4.3 pct, Axis Bank up 1.5 pct
* Rupee-dollar swap auction results aid sentiment
By Chandini Monnappa
March 27 (Reuters) - Indian shares rose for a second session on Wednesday, with financials accounting for more than half the gains, as investors expect Prime Minister Narendra Modi to return to power after a national election.
Indian equities have been buoyant since last week over optimism Modi’s return would spell stability and policy continuity.
“A higher probability of the current party coming back to power is something the market wants to play. The idea is that the rebound that we saw in 2014 (after Modi was elected) would replay,” said Dhananjay Sinha, head-Institutional Research, Economist and Strategy at Emkay Global Financial Services.
“We’ll have to see whether the same story can play with effectiveness.”
India is set to hold a general election in two weeks and about 900 million citizens will be eligible to vote in the seven-stage exercise lasting over a month.
The broader NSE index rose 0.51 percent to 11,539.75 as of 0530 GMT, while the benchmark BSE index was 0.58 percent higher at 38,452.99.
The Reserve Bank of India on Tuesday received bids for $16.31 billion, against the notified amount of $5 billion for its first dollar/rupee three-year buy-sell swap auction.
The results of the rupee-dollar swap auction improved market sentiment, leading to overall buying except in the IT sector, said Anita Gandhi, whole-time director at Arihant Capital Markets.
Nifty’s banks index gained as much as 0.93 percent, with IndusInd Bank Ltd and Axis Bank Ltd adding 4.83 percent and 1.48 percent, respectively.
Shares of GMR Infrastructure Ltd rose 9.77 percent after the company said a consortium of Tata Group, an affiliate of Singapore’s sovereign wealth fund GIC Private Ltd and SSG Capital Management will invest 80 billion rupees ($1.16 billion) in its GMR Airports Ltd unit.
Jet Airways Ltd shares gained for a fourth straight session, rising as much as 5.94 percent after a top aviation ministry official ruled out grounding more planes.
NTPC Ltd and HDFC Bank Ltd were among the top decliners. (Reporting by Chandini Monnappa in Bengaluru; Editing by Shreejay Sinha)