Indian shares surge on financial boost; IDBI Bank jumps

BENGALURU (Reuters) – Gains in the financial sector pushed Indian shares to near one-month highs on Friday, with IDBI Bank surging more than 17% after the country’s central bank removed the state-run lender from its corrective action list.

The blue-chip NSE Nifty 50 index rose 0.84% to 15,302.45 and the benchmark S&P BSE Sensex was up 0.89% at 51,736.18 by 0359 GMT. Markets were closed for a holiday on Thursday.

Asian markets, in general, were higher following Wall Street’s record close overnight after the U.S. president signed a $1.9 trillion stimulus bill into law, while a fall in bond yields eased inflation concerns and added to the upbeat mood.

In domestic trading, IDBI Bank Ltd gained as much as 17.6%. India’s central bank on Wednesday said it would take the state-run lender out of its corrective action list. It was placed on the list in 2017 for being saddled with bad loans and for posting negative return on assets.

The Nifty Bank Index added 1.28% and is up more than 17% since February. HDFC Bank Ltd was the top boost to the Nifty 50, rising 1.7%.

Investors are also awaiting retail inflation data for February later in the day. A Reuters poll showed that retail inflation probably rose but remained within the central bank’s target range.

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