India shares rise for sixth week, boosted by positive global outlook
Coal India, Infosys among major gainers
The benchmark BSE Sensex rose 0.3% to 34,592.39 on Friday and the Nifty 50 Index climbed 0.3% to 10,681.25, boosted by the overnight rally on the Wall Street. The indexes posted a weekly advance of 1.3% and 1.2% respectively.
Except Wednesday, Indian equities rose all other days of the week, as positive global growth outlook continued to boost markets around the world. The Nikkei Asia300 Index of companies outside Japan has gained 0.6% since last Friday, adding to the more-than-3% advance in the previous week.
"The global backdrop is looking very good," said Akash Jain, vice president of research at Ajcon Global. "Company earnings could provide a further impetus to the Indian markets. Expectations are that the aggregate earnings of Sensex companies will see a double digit growth."
In major movers on the Sensex this week, Coal India jumped 10.4% after it raised non-coking coal prices. Analysts estimate that the increase could add up to 35% to the miner's earnings per share in the financial year 2019.
Infosys climbed 6.5%, the biggest contributor to the weekly advance on the Sensex. Earlier this week, the nation's second-largest software exporter said effective tax rate on its U.S. operations will be lower after it signed an agreement with the country's tax authority.
After market hours on Friday, the company reported a more-than-38% jump in quarterly net profit as compared with the corresponding quarter of last year.
Bharti Airtel dropped 5.6% and Idea Cellular slumped 6.1% this week after rival Reliance Jio Infocomm revised its offerings, reigniting concerns a price war among mobile phone operators may intensify.
On Friday, Coal India closed little changed, Infosys gained 0.3%, Bharti shed 1.04%, and Idea gained 1.35%.
Tata Consultancy Services dropped 0.6% after India' largest software company reported a 3.6% decline in net profit for the December quarter.
Dish TV dropped 6.6% amid concerns over the completion of its merger with Videocon D2H. The company said late Thursday that the effective date for the merger closure was delayed as lenders initiated insolvency proceedings against some Videocon group firms.
--Nimesh Vora and Vidyut Deshpande