Reuters/Mumbai

India’s NSE index rose yesterday to a record high for the fourth time this week as software stocks gained after upbeat US and German data raised optimism about the sector’s business outlook, while higher global shares also helped.

US data, including a jump in existing home sales and a drop in initial jobless claims helped push the S&P 500 to a record high on Thursday. European shares also gained in the previous session after better-than-expected German private sector growth figures.

India’s 50-share NSE index rose as much as 0.48% to record at 7,929.05, surpassing its previous all-time high hit on Wednesday.

The shares marked their eighth day of gains in nine sessions, and a second consecutive weekly advance, as overseas investors’ buying spree continued. Foreigners net bought Rs4.13bn ($68mn) of shares on Thursday and net debt worth $2.65bn on Wednesday.

The benchmark BSE index rose 0.23%, or 59.44 points, to end at 26,419.55. It added 1.21% over last week for a second straight weekly gain.

The broader NSE index closed up 0.28%, or 22.10 points, at 7,913.20, for a weekly gain of 1.56%.

The positive economic data from the US and Germany boosted stocks of software exporters such as Infosys, which rose 1.5%, while Tata Consultancy Services ended higher 1.3% and HCL Technologies advanced 2.5%. Tech Mahindra rose 3.1%.

Rupee hits three-week high

The rupee rose yesterday, after earlier hitting a three-week high against the dollar, on continued strong buying of debt and shares by foreign investors, while gains in emerging market currencies also contributed to the improved sentiment.

The rupee was also helped after Bloomberg quoted an analyst at Standard & Poor’s calling the Indian government’s target to lower the fiscal deficit a positive for the country’s ratings, helping the currency rise to a session’s high.The rupee put on 0.5% for the week, a third straight week of gains, as foreign funds turned active buyers of Indian assets, especially debt, despite lingering concerns in global markets including the prospect of earlier-than-expected US rate hikes.

The partially convertible rupee closed at 60.4650/4750 per dollar compared with 60.67/68 in the previous session. The unit rose to 60.3750, its strongest level since July 31.

Most other Asian currencies also rose as the dollar rally lost steam ahead of Yellen’s speech, adding to positive sentiment for the rupee.