Indian shares gain over 2% as banks, JSW Steel rise after Bhushan deal

  • Reuters
  • Stock Market News
Indian shares gain over 2% as banks, JSW Steel rise after Bhushan deal
Credit: © Reuters.

By Sethuraman N R

BENGALURU, March 30 (Reuters) - Indian shares surged on Tuesday, driven by gains in banks and JSW Steel after the steel conglomerate completed purchase of a rival under a bankruptcy resolution law, helping lenders to recover some of their bad loans.

The blue-chip NSE Nifty 50 index .NSEI rose 2.3% to 14,845.10 and the benchmark S&P BSE Sensex .BSESN gained 2.2% at 50,084. Both the indexes fell more than 1% last week.

JSW Steel JSTL.NS , which rose 5%, said on Friday evening it had completed a resolution plan for Bhushan Steel (NS: TATS ) and Power, including a payment of 193.50 billion rupees ($2.66 billion) to financial creditors. Indian markets were closed for a holiday on Monday. is good amount of buying in financials and buying continues in the metals too. These (insolvency) resolutions kind of give a lot of positivity to the markets when they come in," said Saurabh Jain, assistant vice president of research at SMC Global Securities in New Delhi, on Monday.

Major lenders to Bhushan, including State Bank of India SBI.NS Punjab National Bank PNBK.NS , Canara Bank CNBK.NS gained more than 1% each and ICICI Bank ICBK.NS rose 2.3%.

The Nifty bank index .NSEBANK added 1.7% and the public sector bank index .NIFTYPSU gained 0.7%.

The Nifty metals index .NIFTYMET climbed 2.8%, while the Nifty information technology index .NIFTYIT rose 2.9% on expectations of strong results in the upcoming quarter, analysts said.

Shares of Manganese Ore (India) Ltd MOIL jumped 13%, while Steel Authority of India Ltd SAIL.NS , Jindal Steel, Tata Steel TISC.NS rose between 3% and 5%.

Technology heavyweights Infosys INFY.NS and Tata Consultancy (NS: TCS ) Services gained 3.67% and 3%, respectively.

Shares of Indian mobile gaming platform Nazara Technologies Ltd NAZA.NS surged more than 80% in their market debut on Tuesday, reflecting investor enthusiasm for technology firms in a frenzied period for public listings. It last closed up 45%.

($1 = 72.8000 Indian rupees)

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