Indian shares end higher for third straight session on HDFC, Reliance gains
Updates for markets close
By Bharath Rajeswaran
Dec 3 (Reuters) -Indian shares closed higher for a third straight session on Tuesday, led by HDFC Bank and Reliance Industries due to cheaper valuations after the benchmarks slipped into correction territory recently.
The NSE Nifty 50 .NSEI rose 0.75% to 24,457.15 points, while the BSE Sensex .BSESN added 0.74% to 80,845.75. This is their longest gaining streak since September.
The Nifty 50 is now 6.9% below its all-time high levels hit in late September. Both benchmarks fell into correction territory last month.
"In the current markets after the correction, there is lesser froth across market cap segments, which has brought back investors," said Kranthi Bathini, director of equity strategy at WealthMills Securities.
Reliance Industries RELI.NS, which has gained 3% in the previous two sessions, added 1.1% on the day.
High-weightage financials .NIFTYFIN rose about 1%, led by a 1.2% climb in HDFC Bank HDBK.NS.
Axis Bank rose 2.1%, while ICICI Bank added 0.3%.
"Financials offer valuation comfort and investors could choose to keep their money in the segment till December quarter earnings season plays out," Bathini said.
Public sector banks .NIFTYPSU climbed 2.6%, with Bank of Baroda BOB.NS gaining 3.5% and Union Bank UNBK.NS rising 5.3%.
BofA Securities, which noted that Indian state-owned banks had attractive valuations, reiterated "buy" on Bank of Baroda and Union Bank.
It also identified Axis Bank AXBK.NS and ICICI Bank ICBK.NS as its top private sector bets.
Eleven of the 13 sectoral indexes logged gains. The more domestically focused smallcaps .NIFSMCP100 and midcaps .NIFMDCP100 added about 0.9% each.
Consumer index .NIFTYFMCG shed 0.4%, dragged by cigarette maker ITC ITC.NS and Pepsi bottler Varun Beverages VARB.NS which fell 1% and 1.8%, respectively.
Media reports said the government plans to hike the goods and services tax (GST) on products such as aerated beverages, cigarettes and other tobacco-related items to 35% from the current 28%.
Adani Ports APSE.NS rose 6%, after Bernstein reiterated "outperform". The stock trades cheaper than its peers JSW Infra and Container Corp, the brokerage said.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Janane Venkatraman
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