Sensex rises; rupee weakens to 68.02

India’s benchmark stock index posted its longest stretch of weekly gains since April amid optimism that economic growth will be boosted by good monsoon rainfall.The benchmark S&P BSE Sensex rose 0.1% to 35,622.14 at the close in Mumbai, gaining 0.5% on the week for a fourth straight increase. Drugmakers and software exporters advanced with Dr Reddy’s Laboratories, Sun Pharmaceutical Industries and Infosys among the top gainers. The BSE Healthcare gauge has surged 6.5% this week, the most among industry groups and its steepest such climb since March 2015.“Investors are optimistic about growth prospects due to good monsoon rainfall so far,” Soumen Chatterjee, head of research at Guiness Securities Ltd, said by phone. “Corporate earnings and macro numbers indicate that the economy is likely to recover at a faster pace.”India’s monsoon rainfall was 16% above normal since the onset of monsoon on June 1, according to data from India Meteorological Department released Thursday. Normal monsoon rains for a third straight year will increase farm output and boost disposable income in India’s villages, where about 70% of the nation’s population resides.Tata Consultancy Services surged to a record after the exporter said it plans to buy back Rs160bn ($2.4bn) of its own shares. India’s largest IT giant is acquiring the stock at Rs2,100 apiece and the buyback represents 1.99% of the equity capital. Sun Pharmaceutical extended a rally after US regulators lifted sanctions on a key facility. Meanwhile, the rupee weakened 0.57% to 68.02 a dollar yesterday after trade deficit widened more than forecast. Trade deficit for May was at $14.62bn against $13.85bn a year ago. That gap was wider than a median $14.30bn deficit projected in a Bloomberg survey.The 10-year government bond yield yesterday dropped 5 basis points, its steepest decline since May 28, after international crude oil prices fell. The Indian rupee weakened past 68-mark against the US dollar after trade deficit widened.The 10-year bond yield ended at 7.893%, from its Thursday’s close of 7.945%. Bond yields and prices move in opposite directions.Oil headed for a second weekly decline in London as members of the Organisation of Petroleum Exporting Countries were set to clash on raising production at a meeting next week.Brent crude slipped yesterday, on course for a 1.5% drop this week. Saudi oil minister Khalid al-Falih said it’s “inevitable” the group will decide to boost output gradually when it meets on June 22, though Iran, Iraq and Venezuela oppose an increase.Bond prices were trading weaker since last few sessions due to lower US treasury yield and also after central government’s decision to skip debt sales this week eased supply pressure.So far this year, the rupee has weakened 6%, while foreign investors have sold $178.50mn and $5.10bn in equity and debt markets, respectively.