* 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 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. 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.
Shares of GMR Infrastructure Ltd GMRI.NS 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. Airways Ltd JET.NS 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. Ltd NTPC.NS and HDFC Bank Ltd HDBK.NS were among the top decliners.
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