THEbenchmark index of the Bombay Stock Exchange (BSE) logged its seventh straight weekly gains, rising 0.5% on Friday to its best close in more than 11 weeks, with financials and automakers leading the gainers, while top moble firm Bharti Airtel declined. Firm Asian markets supported the gains.
The main index Sensex rose 0.4% this week, registering its longest streak of consecutive weekly gains since last June, buoyed by continued liquidity inflow and earnings optimism. Bharti Airtel fell as much as 2.7% as the leading mobile operator moved closer to wrap up its $9 billion deal to buy most of Kuwaiti Zain’s African assets.
The deal could push up the Indian mobile operator by four notches to be the sixth largest mobile firm in the world by customers, but the management and finances will be stretched. The 30-share BSE index Sensex closed 0.49% or 85.91 points higher at 17,644.76 points, its best close since January 6. Eighteen of its components closed in the green. “There are expectations that we will see good March quarter results,” said Jigar Shah, vice-president of equity sales at Motilal Oswal, a Mumbai-based brokerage.
“Also, foreign institutional investors (FIIs) have been consistently pouring funds, which has led to a liquidity-driven rally,” said Shah. Foreign funds have pumped in around $3.5 billion in Indian equities so far in 2010, a portion of which was absorbed by offerings in the primary market. If March quarter earnings fell short of expectations, it would negatively impact the market, dealers said. Financials gained on optimistic prospects in an advancing economy.
Top lender SBI rose 1.1%, while ICICI Bank and HDFC Bank gained 1.9% and 1.2%, respectively. Mortgage lender HDFC rose nearly 1%. Automakers rallied on expectations of robust sales for the current month. Top vehicle maker Tata Motors raced 3.4%. The 50-share NSE index Nifty closed 0.4% higher at 5,282 points.