INDIA STOCKS-Indian shares rise as oil, Fed fears ease; financials gain on Q2 updates

By Reuters News

By Bharath Rajeswaran

Oct 5 (Reuters) - Indian shares advanced on Monday after their longest weekly losing streak in 25 years, supported by a pullback in oil prices and easing concerns over aggressive US monetary tightening. The Nifty 50 .NSEI rose 0.60% to 22,555.75, while the Sensex .BSESN gained 0.66% to 72,382.47. India's blue-chips have fallen for eight straight weeks through Friday, pressured by record foreign selling, elevated oil prices and a sharp rise in global bond yields.

On Monday, market sentiment improved after softer-than-expected US jobs data reduced expectations of a Federal Reserve rate hike later this month, offering relief to emerging-market assets, while a drop in crude prices also helped.

"Indian markets stand at a crossroads, with domestic liquidity competing with a challenging global macro backdrop," said Kruti Shah, quant analyst at Equirus Securities.

Mean reversion is already underway across large- and mid-caps, with crude prices, global yields and liquidity remaining key variables for the market, Shah said.

Thirteen of the 16 major sectors rose while the broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 added about 0.5% and 0.7%, respectively.

Financials led the rise after positive quarterly business updates. Banks .NSEBANK and financials .NIFTYFIN gained 0.5% and 0.4%, while state-owned lenders .NIFTYPSU added 1%.

Bajaj Finance BJFN.NS rose 2.3% after posting an 11% year-on-year growth in new loans in the September quarter.

Punjab National Bank PNBK.NS gained 2.5% after the state-run lender posted global advances growth of 14.8% in the September quarter.

Bank of Baroda BOB.NS rose 0.9% after reporting 18% growth in quarterly advances.

Mahindra & Mahindra Finance MMFS.NS added 2% after the non-bank lender said that overall disbursement jumped 22% in the September quarter, in its business update.

ITC ITC.NS gained 5.1%, leading the fast-moving consumer goods index .NIFTYFMCG 1.8% higher, after Citi double-upgraded to "buy" from "sell".

Nykaa-parent FSN E-Commerce FSNE.NS rose 4.5% after projecting strong revenue growth in the September quarter, citing strength in fashion and beauty verticals.

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