MUMBAI (Reuters) – Indian shares headed for a third consecutive session of gains led by blue chip BHEL after the power equipment maker posted positive provisional earnings, raising optimism about profits in the capital goods sector.
Banks such as State Bank of India and ICICI also gained, with each up over 2 percent, extending a recent rally on optimism that Reserve Bank of India will cut rates at its meeting on April 17th.
Indian shares have kicked off a new quarter with solid gains, as a rally in global equities sparks hope that the improved risk environment will spur foreign investors to continue buying into domestic stocks.
“There is a lot of optimism that RBI would cut rates on April 17th and that is why interest rate-sensitive stocks are extending rally, leading the market,” said Sajiv Dhawan, managing director at JV Capital Services.
Bharat Heavy Electricals rose 1.2 percent in afternoon trade, after earlier saying provisional net profit rose 14.3 percent to 68.7 billion rupees ($1.35 billion) for the just-concluded 2011/12 fiscal year.
The main 30-share BSE index rose 0.70 percent, while the 50-share Nifty index gained 0.75 percent.