Indian stocks rally on back of financial sector recovery

Indian shares rise: Indian shares surged on Monday, driven by a resurgence in struggling financial stocks and following the positive momentum in Asian markets.At 9:59 am, the NSE Nifty 50 index climbed 1 per cent to reach 21,567.15 points, while the S&amp;P BSE Sensex gained 0.97 per cent to hit 71,395.13 points.Asian markets experienced gains, led by China, as the country's markets regulator announced a full suspension of restricted share lending to stabilise its stock markets.Additionally, hopes for early rate cuts were buoyed by the Federal Reserve's favoured inflation gauge showing a moderation in prices for December.In the domestic market, 12 out of 13 sectors recorded gains, with financial services carrying the highest weightage, rising by 1.3 per cent.Financial stocks had endured a 6.28 per cent decline over the past seven sessions, triggered by disappointing quarterly results from leading private lender HDFC Bank. During the same period, the benchmark Nifty had shed about 3 per cent.HDFC Bank, which itself had suffered a 14.6 per cent decline over the seven sessions, rebounded by 1.3 per cent on the day.Narendra Solanki, head of fundamental research at Anand Rathi Shares and Stock Brokers, expressed optimism, stating, “We think that the bulk of the selling pressure is over and the benchmark Nifty could consolidate near the current levels in the next few sessions ahead of the Fed's rate decision and (India's) union budget due later in the week.”He further noted the potential for the Federal Reserve to provide more insights into the timeline for rate cuts, while India's interim budget might spotlight sectors like infrastructure due to anticipated higher allocations.The Federal Reserve's rate decision is scheduled for Wednesday, while India's budget presentation is set for Thursday.In individual stock movements, Oil and Natural Gas Corporation (ONGC) surged by 4 per cent, becoming the top Nifty 50 gainer, supported by Brent crude futures reaching an eight-week high.Conversely, shares of SBI Cards and Payment Services dropped by 6 per cent after the company reported a third-quarter profit below expectations, attributed to increased finance costs.(With Reuters Inputs)

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Indian stocks rally on back of financial sector recovery

In the domestic market, 12 out of 13 sectors recorded gains, with financial services carrying the highest weightage, rising by 1.3 per cent.

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