Money News

Nifty, Sensex end up nearly 1%; state-run banks gain

A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai, February 26, 2016. REUTERS/Shailesh Andrade/Files

BENGALURU (Reuters) - Indian shares snapped a three-day losing streak to close around 1% higher on Friday as state-run banks surged, while strength in Asian markets on hopes that Washington and Beijing will soon sign the Phase 1 trade deal also boosted sentiment.

The NSE Nifty 50 index .NSEI ended up nearly 1% at 12,245.80, while the benchmark S&P BSE Sensex .BSESN jumped 1.05% to 41,597.58. With two trading sessions left in the year, the Nifty 50 has so far risen 12.73% in 2019.

An announcement by India’s central bank that it will conduct another simultaneous purchase and sale of government bonds lifted stocks in state-run banks. It announced a similar special open market operation earlier this month.

The Nifty PSU bank index .NIFTYPSU climbed 2.92%, recording its best session in two weeks.

Axis Bank AXBK.NS was the top gainer on the Nifty 50 index, rising 3.21%, while Yes Bank YESB.NS ended as the top loser, falling 1.34%.

Global investors returned from their Christmas and Boxing Day break to digest comments from Beijing that it was in close contact with Washington about an initial trade agreement, shortly after U.S. President Donald Trump talked up a signing ceremony for the recently struck Phase 1 trade deal.

Reporting by Nallur Sethuraman in Bengaluru; editing by Uttaresh.V