October 13, 2017 10:03 pm JST

Indian shares clock biggest weekly gain in three months

Bharti Airtel, Reliance Industries pace advances

MUMBAI (NewsRise) -- Indian shares recorded their best weekly gain in three months, with the Nifty index hitting a record high on Friday, driven by advances in index heavyweights Bharti Airtel and Reliance Industries.

The benchmark BSE Sensex gained 1.9% this week while the broader Nifty 50 added 1.9%. On Friday, the Sensex ended up 0.8%, or 250.47 points, at 32,432.69, while the Nifty rose 0.7%, or 71.05 points, at 10,167.45, its highest ever.

Bharti Airtel, the nation's largest telecom operator, surged 13% for the week after jumping 7.9% on Friday. On Thursday, the company announced it will absorb Tata Group's mobile phone business in a 'cash free, debt free' deal. Tata Teleservices (Maharashtra) surged 10%, its daily permissible limit.

Energy-to-telecom conglomerate Reliance Industries jumped 4.8% for the week on bets of a strong July-September earnings. After market hours, the company reported a better-than-expected 12.5% rise in consolidated net profit in the quarter.

"The markets are expected to trade in a range-bound direction going ahead, and earnings from large companies are the key to future momentum," said Swapneel Mantri, a technical analyst at Sushil Finance. "Positive macro-economic data also aided sentiment today."

India's retail inflation edged up 3.28% in September from a year earlier, slower than economists expected, government data showed after-market hours on Thursday. Meanwhile, factory output in August grew 4.3% from a year earlier, the quickest pace since November, driven by increase in manufacturing sector.

General Insurance Corp. of India's $1.74 billion initial public offering, the biggest since 2010, was fully subscribed on the final day of order-taking, further boosting investor sentiment.

Most Asian shares ended up for the week tracking record gains on Wall Street. The Nikkei Asia300 added more than 2%.

On Friday, 22 of the 30 Sensex constituents ended lower, while overall declining issues beat advancing ones 1,447 to 1,294 and 117 remained unchanged.

India's biggest software services exporter Tata Consultancy Services added 4.6% for the week. The company reported a better-than-expected second-quarter net income on Thursday.

Private lenders also contributed to the rally. IndusInd Bank added 4.1% for the week after reporting a 25% increase in net interest income for the September quarter. HDFC Bank gained 2.8%, Axis Bank advanced 5%, and Kotak Mahindra Bank gained 4.3% for the week. Axis Bank is due to report July-September earnings on Tuesday.

Metal stocks extended their recent gains on Friday as global metal prices rallied. Tata Steel rose 2.9% and Vedanta added 0.5%.

Godrej Industries ended up 1.1% ahead of the listing of its agri-business subsidiary Godrej Agrovet on Monday. Idea Cellular gained 5.9% after shareholders approved its proposed merger with Vodafone's India unit.

--Nivedita Naidu

Asia300

Bharti Airtel Ltd.

India

Market(Ticker): BOM(532454)
Sector:
Industry:
Communications
Wireless Telecommunications
Market cap(USD): 29,090.14M
Shares: 3,997.4M
Asia300

Reliance Industries Ltd.

India

Market(Ticker): BOM(500325)
Sector:
Industry:
Energy Minerals
Oil Refining/Marketing
Market cap(USD): 88,534.87M
Shares: 6,332.55M
Asia300

Tata Consultancy Services Ltd.

India

Market(Ticker): BOM(532540)
Sector:
Industry:
Technology Services
Information Technology Services
Market cap(USD): 75,877.68M
Shares: 1,914.28M
Asia300

Tata Steel Ltd.

India

Market(Ticker): BOM(500470)
Sector:
Industry:
Non-Energy Minerals
Steel
Market cap(USD): 10,506.60M
Shares: 971.21M
Asia300

Idea Cellular Ltd.

India

Market(Ticker): BOM(532822)
Sector:
Industry:
Communications
Wireless Telecommunications
Market cap(USD): 5,046.76M
Shares: 3,607.17M

Get Insights on Asia In Your Inbox

To read the full story, Subscribe or Log in

Get your first month for $0.99

Redeemable only through the Subscribe button below

Once subscribed, you can…

  • Read all stories with unlimited access
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

Resubscribe now to continue reading.
BEST OFFER:
Only US$ 9.99 per month for a full-year subscription

To read the full story, Subscribe or Log in

Once subscribed, you can…

  • Read all stories with unlimited access
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.