India shares post weekly gains amid global equity rally
Reliance Industries, Infosys lead advances
MUMBAI (NewsRise) -- Indian shares ended the week higher, tracking equity gains across the globe amid improving growth outlook and lingering hopes of U.S. corporate tax cuts.
The benchmark BSE Sensex index and the broader Nifty 50 added 1% each during the week.
On Friday, the Sensex rose 0.3%, or 91.16 points, to 33,679.24 while the Nifty gained 0.4%, or 40.95 points, to 10,389.70. Reliance Industries rose 4.4% for the week. Infosys, India's second-biggest software exporter, has climbed 4% since last Friday ahead of the start of its 130 billion-rupee ($2 billion) share buyback on Nov. 30.
Sun Pharmaceutical Industries jumped 6.1% this week after shedding 7% a week ago following weak second-quarter earnings. Oil & Natural Gas Corp. advanced 1.9% this week as global crude oil prices rose.
Gains in India came along with a rally in Asia that saw the Nikkei Asia300 Index rise almost 2% since last Friday. During the holiday-shortened week in the U.S., all three major equity indexes on Wall Street touched record highs.
According to the U.S. Federal Reserve's latest meeting minutes released on Wednesday, policymakers are optimistic about growth in the world's largest economy and expect interest rates to be raised in the "near term."
"Global sentiment is positive," said Swapneel Mantri, a technical analyst with Sushil Finance.
"The Fed raising rates is a positive sign for the economy. If the U.S. economy is strong, chances are that other developing economies will also do well."
Investors await India's gross domestic product data for the July-September quarter, due next week.
On Friday, 18 of the 30 constituents on the Sensex ended higher. Advancing issues beat declining ones 1,513 to 1,227, while 154 remained unchanged.
Mahindra & Mahindra added 1.1% on Friday. The sport-utility vehicle maker is partnering with Uber to run electric cabs in India from early next year.
Port operator Gujarat Pipavav Port added 2.9% to 152.85 rupees. HSBC upgraded the stock to "hold" from "reduce" and raised its target price to 144 rupees from 120 rupees.
Private lenders Kotak Mahindra Bank and HDFC bank added 1% and 0.2% each respectively. Bajaj Auto gained 1.1%.