March 20, 2018 / 6:56 AM / a year ago

Indian shares rise; financials, IT stocks gain

* NSE index up 0.48 pct, BSE index up 0.45 pct

* Market rise due to short-covering - analyst

* Metal stocks slip as Chinese iron ore prices fall

By Krishna V Kurup

March 20 (Reuters) - Indian shares rose on Tuesday, led by financial and IT stocks, but the gains were capped as material stocks such as Vedanta Ltd stumbled on losses in Chinese iron ore prices.

The broader NSE index was up 0.48 percent at 10,142.75 as of 0620 GMT, while the benchmark BSE index rose 0.45 percent to 33,070.36.

“The rise in the market after 4-5 sessions of declines is a clear cut case of short-covering,” said R.K. Gupta, managing director of Taurus Asset Management, adding the market would remain under pressure for the next couple of days.

Investors are also watching out for the U.S. Federal Reserve policy meet this week.

IT stocks rose after three sessions of falls, with the Nifty IT index up over 1 percent. Infosys advanced 0.9 percent, while Tech Mahindra Ltd rose 2.2 percent.

Financial stocks Housing Development Finance Corp inched up 0.9 percent, while State Bank of India rose 1.3 percent.

Aviation stocks also gained after data released by India’s civil aviation authority showed domestic passengers numbers rose 24.1 percent on-year in February.

Shares in Jet Airways Ltd rose 1.6 percent, while Spicejet Ltd was 1.2 percent higher.

Meanwhile, metal stocks slipped as Chinese iron ore prices fell further, a day after posting their biggest daily drop in almost 10 months. The Nifty metal index fell as much as 2.5 percent, with Vedanta plunging 5.2 percent.

Shares in pharmaceutical company Cipla Ltd fell to their lowest since June 6 on reports that the U.S. regulator had found deficiencies in Cipla’s batch production and control records after inspecting the company’s Goa unit.

Among the decliners, state-run Canara Bank tumbled over 5 percent after India’s federal police charged a former chairman of the bank and others over allegations of fraud. (Reporting by Krishna V Kurup in Bengaluru; Editing by Sunil Nair)

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