MUMBAI: Overseas investors were buyers of Rs 11.51 billion ($186.3
million) worth of Indian shares on Thursday, taking total inflows for
the year to over Rs 1 trillion, regulatory and exchange data show.
Shares rose on Friday to their highest close in more than a month, extending gains for a second consecutive session on hopes that state elections results on Sunday will show strong support for BJP ahead of general elections next year.
Continued foreign investor buying has also supported shares.
BJP is perceived by many investors as being more business-friendly, and investors say a good showing in state elections held since last month could spark further gains in Indian indexes that are already near record highs.
The uncertainty about when the US Federal Reserve would begin to halt the flow of easy money has dominated trading worldwide for months and the main US jobs indicator, the non-farm payrolls data, due at 1330 GMT - may yet tip the balance again.
The median forecast is for an increase of 180,000 in USpayrolls with the jobless rate steady at 7.2 per cent.
"We believe that while our markets will get impacted if the Fed tapers, but they will not be in a mood to even consider the news unless it gets the actual assembly (election) results out of the way," said Jyotheesh Kumar, executive vice-president of HDFC Securities.
The benchmark BSE index rose 0.18 per cent, or 38.72 points, to end at 20,996.53, its highest close since November 1. This also marked its second consecutive weekly gain.
The index is not far from a record high of 21,321.53 hit on November 3.
The broader NSE index rose 0.3 per cent, or 18.80 points, to end at 6,259.90, also gaining 1.4 per cent for the week, not far from a record 6,357.10 hit on Jan. 8, 2010.
The share rally is, however, masking an underlying weakness. The market has been lifted by just a handful of stocks of exporters reaping the benefits of a slump in the rupee.
Blue chips rose again on Friday. Axis BankBSE 3.18 % Ltd rose 3.1 per cent, while ICICI BankBSE 0.59 % Ltd ended 0.7 per cent higher
Shares of two-wheeler companies gained on optimism about their earnings outlook. Hero MotoCorpBSE 2.33 % Ltd rose 2.2 per cent, Bajaj AutoBSE 0.55 % Ltd gained 0.5 per cent, while Eicher Motors Ltd rose 1.5 per cent.
Power Grid Corp of India Ltd shares rose 2.8 per cent after stronger-than-expected demand for its $1.1 billion share sale.
Sugar companies surged after farm minister Sharad Pawar said India was looking at providing incentives for production of raw sugar and also at doubling the mandatory blending of ethanol in gasoline to 10 per cent.
Balrampur Chini Mills Ltd gained 2.6 per cent, Bajaj Hindusthan Ltd surged 5.8 per cent, while Shree Renuka Sugars Ltd ended 5 per cent higher.
Among stocks that fell, Jubilant Life Sciences Ltd shares fell 7.5 per cent adding to Thursday's 10 per cent fall after the company said it
Shares rose on Friday to their highest close in more than a month, extending gains for a second consecutive session on hopes that state elections results on Sunday will show strong support for BJP ahead of general elections next year.
Continued foreign investor buying has also supported shares.
BJP is perceived by many investors as being more business-friendly, and investors say a good showing in state elections held since last month could spark further gains in Indian indexes that are already near record highs.
The uncertainty about when the US Federal Reserve would begin to halt the flow of easy money has dominated trading worldwide for months and the main US jobs indicator, the non-farm payrolls data, due at 1330 GMT - may yet tip the balance again.
The median forecast is for an increase of 180,000 in USpayrolls with the jobless rate steady at 7.2 per cent.
"We believe that while our markets will get impacted if the Fed tapers, but they will not be in a mood to even consider the news unless it gets the actual assembly (election) results out of the way," said Jyotheesh Kumar, executive vice-president of HDFC Securities.
The benchmark BSE index rose 0.18 per cent, or 38.72 points, to end at 20,996.53, its highest close since November 1. This also marked its second consecutive weekly gain.
The index is not far from a record high of 21,321.53 hit on November 3.
The broader NSE index rose 0.3 per cent, or 18.80 points, to end at 6,259.90, also gaining 1.4 per cent for the week, not far from a record 6,357.10 hit on Jan. 8, 2010.
The share rally is, however, masking an underlying weakness. The market has been lifted by just a handful of stocks of exporters reaping the benefits of a slump in the rupee.
Blue chips rose again on Friday. Axis BankBSE 3.18 % Ltd rose 3.1 per cent, while ICICI BankBSE 0.59 % Ltd ended 0.7 per cent higher
Shares of two-wheeler companies gained on optimism about their earnings outlook. Hero MotoCorpBSE 2.33 % Ltd rose 2.2 per cent, Bajaj AutoBSE 0.55 % Ltd gained 0.5 per cent, while Eicher Motors Ltd rose 1.5 per cent.
Power Grid Corp of India Ltd shares rose 2.8 per cent after stronger-than-expected demand for its $1.1 billion share sale.
Sugar companies surged after farm minister Sharad Pawar said India was looking at providing incentives for production of raw sugar and also at doubling the mandatory blending of ethanol in gasoline to 10 per cent.
Balrampur Chini Mills Ltd gained 2.6 per cent, Bajaj Hindusthan Ltd surged 5.8 per cent, while Shree Renuka Sugars Ltd ended 5 per cent higher.
Among stocks that fell, Jubilant Life Sciences Ltd shares fell 7.5 per cent adding to Thursday's 10 per cent fall after the company said it
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