September 21, 2018 / 8:01 AM / 3 months ago

Indian shares snap 3-day losing spell; energy stocks lead

* NSE index up 0.5 pct, BSE index rises 0.6 pct

* Nifty energy index up 2 pct

* Shares of Yes Bank plunge as RBI cuts CEO Kapoor’s term

By Krishna V Kurup

Sept 21 (Reuters) - Indian shares gained on Friday, as the rupee recovered from a recent record low, while Asian markets rallied after a fresh round of tariffs between China and the United States was seen as inflicting less damage than initially feared.

The rupee, Asia’s worst performing currency this year, strengthened to 71.7650 per dollar, after hitting a slew of all-time lows in the last few sessions.

The government is planning a number of measures to stem rupee’s decline, including asking state oil firms to lock in their crude futures’ purchase prices.

Asian stocks extended gains on Friday after Wall Street’s S&P 500 set a new all-time high, while the dollar slipped on views that tariffs between Beijing and Washington may be less damaging than initially feared.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.4 percent.

The broader NSE index was up 0.48 percent at 11,288.35, as of 0700 GMT, while the benchmark BSE index rose 0.56 percent to 37,329.69.

Markets are seeing some relief on the back of positive global sentiment, crude oil prices and a stronger rupee, said Siddhartha Khemka, Head of Retail Research, Motilal Oswal Securities.

“However, the weakness could come back next week,” he added.

Financial stocks on both indexes shed early gains on Friday after investors factored in central bank’s decision to reduce Yes Bank CEO Rana Kapoor’s term, creating uncertainty about its outlook.

Shares in the private-sector lender tumbled up to 31.7 percent, wiping as much as $3.1 billion off its market value.

Markets were closed on Thursday for a public holiday.

Meanwhile, lenders such as HDFC Bank Ltd and ICICI Bank Ltd gained up to 2 percent and 4 percent respectively.

The NSE index was underpinned by energy shares, with Nifty energy index climbing as much as 2 percent.

Oil-to-telecom giant Reliance Industries Ltd was the top boost on the index, rising as much as 2.2 percent, while Indian Oil Corp Ltd rose 3.5 percent.

Oil prices were mixed on Friday as U.S. President Donald Trump urged the Organization of the Petroleum Exporting Countries (OPEC) to lower crude prices ahead of its meeting in Algeria this weekend.

Shares of Jet Airways (India) Ltd, the country’s biggest full-service airline, hit their lowest since Oct. 2014 on reports that income tax officials were conducting a survey at its premises. The survey came in shortly after an incident involving a Jet Airways flight that lost cabin pressure and was forced to turn back. (Reporting by Krishna V Kurup in Bengaluru, Editing by Sherry Jacob-Phillips)

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