 "Markets rebound from 3-month low")
Indian stocks rose for the first time in seven days, as some investors judged the recent decline in the benchmark index to a three-month low as excessive.
Reliance Industries, owner of the world's largest refining complex, had the steepest gain of 3.8 per cent in about three months. GAIL India, the nation's biggest gas-marketing company, climbed two per cent, the most in two weeks. Hindalco Industries, the biggest aluminum producer, rose 2.6 per cent, ending a two-day, 6.9 per cent retreat. The company saw a rise first time in three days.
Shipping Corporation of India surged 7.4 per cent to its highest level since August 2011, after the government proposed measures to boost the local shipbuilding industry. ABG Shipyard soared 8.6 per cent, the most since July 23. Great Eastern Shipping rose 1.4 per cent. The S&P BSE Sensex surged 0.9 per cent, to close at about 25,252. The gauge slid for a sixth day on Wednesday, sending its 14-day relative-strength index below the threshold of 30, which some investors see as a signal to buy. Prospects of higher US interest rates and concern over the passage in parliament of the Goods and Services Tax (GST) Bill, the centerpiece of Prime Minister Narendra Modi's reform push, weighed on stocks this week.
"The market is a bit oversold and we're seeing some value- buying," Alex Mathews, head of research at Geojit BNP Paribas Financial Services, said by phone from the southern state of Kerala. "The overall trend remains negative, given the uncertainty about the GST Bill and the impending Fed rate lift-off next week," he added.
Mathews said he's advising investors to buy logistics and consumers goods companies for the longer term. The rupee strengthened for the first time in seven days, after the central bank indicated it might take additional steps to stem the currency's losses. The currency lost 0.5 per cent in the past six days. International investors sold a net $68 million of local stocks on Wednesday, reducing this year's inflows to $2.7 billion.
