Markets rise 0.5%; financials, metals up

Markets rise 0.5%; financials, metals up

Mumbai: Indian shares were trading 0.5% higher on Friday, on track to post their best weekly gain this year, supported by firmer Asian peers and a rise in financial stocks.

Traders said a revival in portfolio inflows from foreign institutional investors (FIIs) was underpinning the market. Latest data showed foreign funds had bought $791 million of Indian equities in the last three sessions.

By 10:56am, the 30-share BSE index was trading up 0.49% at 17,059.37. Twenty-four of its components were trading in the green. The 50-share NSE index was up 0.5% at 5,106.50.

If the market holds on to the rise till close, the index would notch a gain of 3.8% on the week.

“Global cues are helping the market," said Mehul Dedhia, assistant vice-president of sales at brokerage Sharekhan. “Flows from FIIs seem to have resumed. So any steep downside is ruled out for now."

Financials led the rise on optimistic long-term outlook in an expanding economy.

Leading lender State Bank of India and rival ICICI Bank gained 0.5% each.

Mortgage lender Housing Development Finance Corp rose 0.2%.

Energy giant Reliance Industries, which has the highest weight on the main index, gained 0.2% to Rs1,015.55.

Non-ferrous metals maker Sterlite Industries rose 0.6% as London copper rose ahead of a US jobs report, which should provide further clues on the pace of economic recovery.

Aluminium maker Hindalco and Tata Steel, the world’s eighth-largest steel maker by output, firmed 0.8% and 1.1% respectively.

In the broader market, gainers were more than twice the number of losers on volume of 146 million shares.