Indian shares snapped a three-day losing streak and gained 1.5 percent on Friday, helped by a gains in financials and a late recovery in Anil Ambani shares. However, the benchmark index still shed 1.6 percent this week and posted its third straight weekly decline.
Shares in Anil Ambani-led companies recovered after an early slide after the Reliance ADA Group blamed stock brokers for spreading "baseless sensational charges" against the group. The 30-share BSE index ended up 1.52 percent, or 265.57 points, to 17,728.61, with 21 of its components advancing.
"It looks like there is some bottom-fishing and value buying happening," said Nitin Rakesh, CEO of Motilal Oswal's asset management business, adding that valuations had turned attractive in certain "pockets." The benchmark has declined 13.6 percent year-to-date, as foreign funds pulled out $1.5 billion from Indian equities. A spate of corruption scandals has crippled the government, leading to arrests of politicians and company executives, and rattled a market worried about where the next shoe may drop. Reliance Infrastructure closed 5.2 percent higher, while Reliance Communications firmed 0.6 percent at close. Reliance Power rose nearly 2 percent.
Financials pulled back after falling for most of the week. The banking sector index rose 3.5 percent, but is still down 1.8 percent this month. Top lender State Bank of India firmed 3.5 percent, while leading private lenders ICICI Bank and HDFC Bank gained 4.2 percent and 2.1 percent, respectively.
Mortgage lenders Housing Development Finance Corp gained 3.9 percent. Tata Motors, India's leading truck maker that also produces cars, closed 3.8 percent higher. Bharti Airtel and Idea Cellular ended down 1.1 percent and 2.1 percent, respectively. Nearly three shares advanced for every share that declined in the broader market in a volume of 336 million shares traded on the BSE, higher than its 30-day average daily volume of 306 million shares. The 50-share NSE index gained 1.6 percent to 5,310.
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