Indian shares gain nearly 2 pct; RBI policy stance key
* BSE index gains 1.86 pct; NSE ends 1.92 pct higher * Reliance Industries gains on reserve hopes * Apollo Tyres fails to stem stock slide on Cooper deal By Abhishek Vishnoi MUMBAI, June 14 (Reuters) - Indian shares snapped a three-session losing streak to gain nearly 2 percent on Friday, after Reliance Industries surged on hopes one of its blocks held higher gas reserves while lenders rallied after easing wholesale inflation raised hopes of a rate cut. Shares also tracked a rally in Asian markets following a bruising selloff in global markets, which had sent the Indian rupee to record lows and helped push the benchmark BSE index down 1.3 percent for the week. Investors are now looking ahead at the Reserve Bank of India's policy review on Monday as the next key trigger, along with movements in global markets. Although most analysts expect the central bank to keep rates on hold, an outside chance was seen after India's headline inflation slowed for a fourth straight month in May to 4.7 percent from a year earlier. "The RBI meeting on Monday will be an important trigger for the market. Expectations are mixed on whether the RBI will cut rates or not," said Dipen Shah, head of Private Client Group Research, Kotak Securities. Markets are pricing in some roll-back of stimulus by the U.S. Federal Reserve as well, but if it maintains status-quo, there can be further respite to the markets, added Shah. The benchmark BSE index rose 1.86 percent, or 350.77 points, to end at 19,177.93, marking its biggest single-day gain since May 15, although it was not enough to prevent the index from posting its second consecutive weekly fall. The broader NSE index rose 1.92 percent, or 109.30 points, to end at 5,808.40, closing above the psychologically important 5,800 level but 1.2 percent lower for the week. Reliance Industries Ltd gained 3.2 percent after its KG-D6 block partner Niko Resources Ltd said its proved reserves increased by 160 percent, and that a recent gas discovery in the D6 block off India's east coast could add significantly to future reserves. Lenders rallied after easing wholesale inflation raised rate cut hopes. The NSE banking index fell 2.5 percent for the week, a fourth consecutive weekly drop. ICICI Bank Ltd gained 3.1 percent and Axis Bank Ltd rose 2.2 percent. Tata Motors Ltd gained 4.9 percent ahead of unit Jaguar Land Rover Ltd's global wholesale numbers expected later in the day. Tata Coffee Ltd climbed 6.3 percent on value buying after falling 25 percent in previous two sessions. Maruti Suzuki India Ltd shares rose 4 percent on value buying after falling about 8 percent in the last five sessions. Traders also say the yen looks overbought versus the dollar in the short term and therefore may weaken, generating a tactical buy call on Maruti. However, among stocks that fell, Apollo Tyres Ltd fell 5.5 percent, losing about a third of its market value over two days as investors fretted over the debt it will take on to fund its $2.5-billion acquisition of U.S.-based Cooper Tire & Rubber Co. For additional stocks on the move double click FACTORS TO WATCH * Dollar weak but rising stocks provide some support * Brent slips on ample U.S. inventory, weak outlook * Shares, dollar steady after sharp selloff * Foreign institutional investor flows * For closing rates of Indian ADRs ASIA-PACIFIC STOCK MARKETS: Pan-Asia........ Japan....... S.Korea... S.E. Asia....... Hong Kong... Taiwan.... Australia/NZ.... India....... China..... OTHER MARKETS: Wall Street .... Gold ....... Currency.. Eurostocks..... Oil ........ JP bonds... ADR Report ..... LME metals. US bonds.. Stocks News US.. Stocks News Europe DIARIES & DATA: Indian Data Watch Asia earnings diary U.S. earnings diary European diary Indian diary Wall Street Week Ahead Eurostocks Week Ahead TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General Asia Macro data <ECONASIA (Editing by Jijo Jacob)
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