Reuters
Mumbai
Indian shares rose yesterday for a fourth straight session of gains, tracking stronger global markets and closing at their highest in nearly a month as automakers surged on hopes of better sales in the festive season.
The NSE index rose as much as 2.8% for the week, snapping a four-week losing streak and crossing the psychologically important 8,000 point level during the day. Indian markets will be closed today and tomorrow for holidays.
Sentiment was upbeat this week after the government introduced several reforms, among them lifting price controls on diesel and setting the stage for liberalisation of the coal industry.
Hopes for further steps gained currency after Prime Minister Narendra Modi’s party won two state elections.
“The sentiment is upbeat now. The reforms initiatives from the government is a positive sign. A record high is achievable in the next week,” said Suresh Parmar, head, institutional equities at KJMC Capital Markets.
“Corporate earnings will be the key in the coming week to set the immediate trend.”
Shares also tracked higher Asian markets after strong gains on Wall Street and hopes of fresh stimulus from the European Central Bank.
The benchmark BSE index closed 0.8% higher at 26,787.23 points, rising 2.6% for the week.
The broader NSE index rose 0.86% to close at 7,995.90.
Auto stocks led the gainers. Bikemaker Hero MotoCorp hit a record high on expectations of strong sales in the festive season before finishing up 4%.
Tata Motors closed up 3.5%, Bajaj Auto gained 3.4%, Maruti Suzuki India ended 3.3% higher and Mahindra and Mahindra closed up 2.6%.
Other blue-chips also gained on strong global cues.
Rupee ends unchanged
The rupee ended flat yesterday, as gains in shares amid hopes for more economic reforms from the Narendra Modi government were offset by caution ahead of a long weekend.
The rupee rose around 0.27% for the week against the dollar. Recent measures by the government, including deregulation of diesel prices and plans to open up the coal industry to private players, have raised expectations for a bigger reform push.
Traders hope such reforms could help attract more foreign inflows into bonds and stocks. “I feel 60.85-61 remains an important support as RBI starts buying at those levels. I feel the inflows will continue and over the weeks we might see inflows improving since the government has started implementing a few policies,” said Paresh Nayar, head of foreign exchange and fixed income trading at First Rand Bank.
The partially convertible rupee closed at 61.31/32 per dollar, unchanged from its Tuesday close.
