Indian shares post best weekly rise in 11 weeks
Indian shares climbed 0.9 percent on Friday led by banks and outsourcers and propelled the main index to its best weekly gain in 11 weeks, supported by rising foreign portfolio investment.
The 30-share BSE index .BSESN rose 4.5 percent on the week, taking gains this month to 6 percent after sliding 7.2 percent in October, which was its worst performance in a year.
"Ihe rally is driven by liquidity, which is fuelled by dollar weakness," said Manish Sonthalia, portfolio management services manager at Motilal Oswal.
Foreign funds have moved $14.8 billion into Indian stocks this year, lifting the BSE index nearly 75 percent. In 2008, they had pulled out more than $13 billion and the benchmark fell over half.
Private lenders ICICI Bank (ICBK.BO: Quote, Profile, Research) and HDFC Bank (HDBK.BO: Quote, Profile, Research) were among the gainers on hopes rising industrial activity will boost demand for loans and the long-term outlook.
"We expect bank credit growth to rise to 16 percent year-on-year by March 2010," Morgan Stanley said, adding it will accelerate to 22 percent by end-2010 as capital expenditure also begins to recover next year.
The BSE index closed up 0.92 percent, or 152.80 points, at 16,848.83. Twenty-five of its components advanced.
ICICI Bank and HDFC Bank rose 1.6 percent and 0.4 percent respectively while SBI gained 0.1 percent.
Export-focused software services companies climbed as the sector outlook was positive, with orders set to rise and hiring plans picking up, R. Ganesh, director of Systematix Shares, said.
Bellwether Infosys Technologies (INFY.BO: Quote, Profile, Research) rose 1.5 percent to 2,358.80 rupees.
Sector leader Tata Consultancy (TCS.BO: Quote, Profile, Research) added 2.5 percent to 670.20 rupees and Wipro (WIPR.BO: Quote, Profile, Research) firmed 1.2 percent to 632.70 rupees.
State-run oil and gas producer Oil & Natural Gas Corp (ONGC.BO: Quote, Profile, Research) rose 3.1 percent to 1,183.50 rupees on market talk the oil ministry had proposed a hike in gas prices.
Engineering and construction firm Larsen & Toubro (LART.BO: Quote, Profile, Research) gained 0.2 percent to 1,643.55 rupees, after sources said it sold a third of its holding in outsourcer Mahindra Satyam (SATY.BO: Quote, Profile, Research) for about $66 million. [ID:nBOM4360].
In the broader market, losers almost matched the number of gainers on relatively moderate volume of 423 million shares.
Indian shares climbed 0.9 percent on Friday led by banks and outsourcers and propelled the main index to its best weekly gain in 11 weeks, supported by rising foreign portfolio investment.
The 30-share BSE index .BSESN rose 4.5 percent on the week, taking gains this month to 6 percent after sliding 7.2 percent in October, which was its worst performance in a year.
"Ihe rally is driven by liquidity, which is fuelled by dollar weakness," said Manish Sonthalia, portfolio management services manager at Motilal Oswal.
Foreign funds have moved $14.8 billion into Indian stocks this year, lifting the BSE index nearly 75 percent. In 2008, they had pulled out more than $13 billion and the benchmark fell over half.
Private lenders ICICI Bank (ICBK.BO: Quote, Profile, Research) and HDFC Bank (HDBK.BO: Quote, Profile, Research) were among the gainers on hopes rising industrial activity will boost demand for loans and the long-term outlook.
"We expect bank credit growth to rise to 16 percent year-on-year by March 2010," Morgan Stanley said, adding it will accelerate to 22 percent by end-2010 as capital expenditure also begins to recover next year.
The BSE index closed up 0.92 percent, or 152.80 points, at 16,848.83. Twenty-five of its components advanced.
ICICI Bank and HDFC Bank rose 1.6 percent and 0.4 percent respectively while SBI gained 0.1 percent.
Export-focused software services companies climbed as the sector outlook was positive, with orders set to rise and hiring plans picking up, R. Ganesh, director of Systematix Shares, said.
Bellwether Infosys Technologies (INFY.BO: Quote, Profile, Research) rose 1.5 percent to 2,358.80 rupees.
Sector leader Tata Consultancy (TCS.BO: Quote, Profile, Research) added 2.5 percent to 670.20 rupees and Wipro (WIPR.BO: Quote, Profile, Research) firmed 1.2 percent to 632.70 rupees.
State-run oil and gas producer Oil & Natural Gas Corp (ONGC.BO: Quote, Profile, Research) rose 3.1 percent to 1,183.50 rupees on market talk the oil ministry had proposed a hike in gas prices.
Engineering and construction firm Larsen & Toubro (LART.BO: Quote, Profile, Research) gained 0.2 percent to 1,643.55 rupees, after sources said it sold a third of its holding in outsourcer Mahindra Satyam (SATY.BO: Quote, Profile, Research) for about $66 million. [ID:nBOM4360].
In the broader market, losers almost matched the number of gainers on relatively moderate volume of 423 million shares.
