Mumbai: Indian shares recovered from an unsteady start and extended gains to 1% on Friday afternoon, riding a wave of investor optimism there was limited downside to the market.
At 1:22pm, the 30-share BSE index was up 1% at 11,250.68 points, with 20 stocks gaining. The benchmark had fallen as much as 0.6 percent earlier in the session and the 50-share NSE index was up 1% at 3,457.50
Shares were choppy in the morning as resistance emerged after rallying 2.9% in the previous session, but were on course to extend weekly rise into a seventh in a row.
Top energy group Reliance Industries Ltd and outsourcer Infosys Technologies were targeted by profit takers after they rose 2.7% and 5.1%, respectively, on Thursday.
Leading telecoms firms Bharti Airtel and Reliance Communiations, which report quarterly earnings next week, climbed and steadied the main index.
“Companies have not thrown up any big negative surprise with their quarterly results, and this lack of bad news in helping the market,” S. Ranganathan, head of research at LKP Shares, said.
By 11:38am, the 30-share BSE index had edged up 0.1% at 11,147.41 points, with 16 stocks advancing. It had fallen as much as 0.6% earlier. The 50-share NSE index was up 0.1% at 3,427.70.
The benchmark, which had risen a third over six weeks to last Friday, snapped a three-day losing streak on Thursday, putting it on track for another weekly rise.
No. 2 outsourcer Infosys Technologies fell 2.2% to Rs1,418.20. Reliance Industries, which has the biggest weight in the main index, shed 0.8% to Rs1,748.65, a day after it reported a 1% drop in net profit but fared better than market expectations.
“Reliance had by and large led the rally till now. But to expect the stock to go up to Rs2,000 in a hurry is asking for a bit too much,” Ranganathan said.
No. 1 telecoms firm Bharti Airtel rose 3.1% to Rs730.50, while rival Reliance Communications gained 2% to Rs228.70.
State Bank of India, the country’s top lender, rose 1.4% to Rs1,283.50.
In the broader section, advancers led losers in the ratio of more than 1.5:1 on relatively moderate volume of 169.6 million shares.