INDIA STOCKS Indian shares rise 2% as banks, metals surge

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Indian shares rose 2% on Tuesday, led by gains in banks and metal companies, as an attempted bounce in global equities and upbeat quarterly updates from companies lifted investor sentiment ahead of the corporate earnings season.

"Our markets and economy are much more resilient than the rest of the world. It is expected that the credit growth will be much better in the second half of the year and that's the reason we are seeing good amount of buying in banks," said Saurabh Jain, assistant vice-president, research, at SMC Global Securities.shares rose 5% after it posted an 18% jump in net advances in the second quarter . It was the top gainer in Nifty 50 index.

"Earnings will be the major driver of markets for the next few weeks, with more stock-specific moves. Banks, capital goods and consumer companies are expected to shine more," SMC's Jain said. Foreign institutional investors turned net buyers in the beginning of the week, purchasing 5.91 billion rupees worth of domestic equities on Monday, provisional data available with the National Stock Exchange showed.

FIIs sold $1.99 billion of shares last week, as per Refinitiv Eikon data. September saw net FII equity outflows of $903.08 million, compared with $6.44 billion of inflows in August, according to Refinitiv.Reporting by Nallur Sethuraman and Gaurav Dogra in Bengaluru; Editing by Subhranshu Sahu, Savio D'Souza and Dhanya Ann Thoppil

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