Sensex closes 217 points higher at 25,735.90, Nifty above 7,830

Mumbai: Indian stocks advanced, with the benchmark gauge rebounding from its biggest loss in a month, as lenders and metal producers climbed.

ICICI Bank Ltd, the country’s biggest private lender, climbed to a two-week high. The stock was the best performer on the S&P BSE Bankex, which jumped 1.4%. Tata Steel Ltd rallied to a four-month high, while Oil and Natural Gas Corp. Ltd (ONGC), the largest state-owned explorer, increased to its highest price in nearly three weeks.

The S&P BSE Sensex gained 0.9%, or 216.68 points, to 25,735.90 at the close in Mumbai after posting its steepest drop since 18 November on Friday. The gauge still halted two weeks of losses after the Federal Reserve raised US interest rates for the first time in nearly a decade, ending a period of uncertainty. The Sensex has retreated in the month only twice in the past decade, data compiled by Bloomberg show.

The broader Nifty index closes 0.93%, or 72.50 points, higher at 7,834.45.

“We have all the reason to remain bullish until 31 December as there will be some sort of net asset value-management in the large caps before the year ends,” Ashish Maheshwari, a director at Blue Ocean Strategic Advisors Pvt. Ltd, said in an interview with Bloomberg TV India. The Fed’s decision has been “priced in,” he said.

ICICI Bank rallied 3.2%, reducing this year’s loss to 27%. Axis Bank Ltd rose 2.3%, ending two days of declines. State Bank of India (SBI) climbed 1.7%. The Bankex rose to its highest level since 8 December.

Bombay Stock Exchange - BSE

National Stock Exchange of India Ltd (NSE)