Indian shares rose more than 1 percent on Friday, erasing the previous day's losses with help from software firms and refiners. Federal bonds also gained, encouraged by softer oil prices and lower-than-expected inflation. The 30-share BSE index rose 1.17 percent to 7,271.54 points, up 0.8 percent on the week and more than 8 percent since the start of June in the run-up to quarterly earnings, powered by $2 billion of foreign fund inflows over that time.
"We saw some value buying today, and a recovery in tech stocks, besides stock-specific activity on earnings," said Deven Choksey, chairman of KRC Shares and Securities.
Software services firms, led by bellwether Infosys Technologies Ltd, the biggest index gainer, made a strong recovery after a recent slide on earnings jitters. India's top exporter, Tata Consultancy Services, reports earnings later today.
US crude futures hovered just above $58 a barrel, boosting domestic refiners, with state-run Indian Oil Corp up more than 1 percent and private-sector Reliance Industries jumping nearly 4 percent.
The yield on the actively traded 7.27 percent bond maturing in 2013 eased to 7.0958 percent from the previous day's 7.1203 percent and moved further away from Wednesday's 7.1440 percent, which was the highest since mid-May.
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