BSE Sensex up private banks gain

BSE-SENSEX-ICICI-HDFC-BANK:BSE Sensex up private banks gain

 

Reuters Market Eye - The BSE Sensex rose 0.4 percent, while the 50-share Nifty advanced 0.3 percent.

Private banks such as ICICI Bank rose 1.3 percent and HDFC Bank rose 0.5 percent, while state-run State Bank of India fell 1 percent.

Traders attribute the rise in ICICI Bank shares to hopes of better-than-expected June quarter earnings, especially as brokerages like CLSA, BofA-Merrill Lynch say the bank's asset quality has improved.

Dr.Reddy's Laboratories falls 2.3 percent ahead of the June quarter results on Thursday.

Traders eyeing news flow on reforms after the presidential elections and monsoon for further cues.

(For a graphic about historic relationship between monsoon and the Sensex, click http://link.reuters.com/nyp49s)