Indian shares rose for a second consecutive day on Friday, led by gains in IT stocks after global rival Accenture Plc raised its revenue forecast while Reliance Industries rose on bets it will roll out its telecom services in the next few months. Gains also tracked Asian shares that enjoyed their best day in 15 months after Wall Street boasted its biggest two-day advance since late 2011 amid relief the Federal Reserve was in no rush to withdraw stimulus from the US economy.
Investors remained encouraged after the Indian cabinet approved a constitutional amendment bill on Wednesday to rationalise state and central indirect taxes into a harmonised goods and services tax (GST). Still, for the week, the shares ended flat to slightly higher after two previous weeks of declines as a slump in the Russian rouble sparked fears of financial contagion earlier in the week.
"Overall improving liquidity and likely window dressing by funds may keep equities at a higher keel till 2014 ends," said Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services Ltd. The probability of fresh short positions ahead of monthly derivatives expiry next week is also lower, he added. The NSE index rose 0.81 percent to 8,225.20, while the benchmark BSE index ended up 0.9 percent at 27,371.84.
The 50-share index ended 0.01 percent higher for the week, while the BSE index market a weekly gain of 0.08 percent, averting a third consecutive weekly decline. Software stocks led the gains after global rival Accenture Plc on Thursday raised its FY15 revenue growth forecast to 5-8 percent from 4-7 percent earlier. Infosys gained 1.7 percent, Tata Consultancy Services rose 2 percent and Wipro advanced 2.3 percent. HCL Technologies gained 2.3 percent while Tech Mahindra added 1.2 percent.
Reliance Industries gained 2.32 percent on bets the company's telecom unit Reliance Jio will rollout 4G services in the next few months, traders said. Select coal users gained after the government on Thursday released an approach paper on rules for auctioning of coal mines. Sesa Sterlite gained 2.2 percent, Hindalco Industries rose 3.2 percent while CESC advanced 1 percent. Among other bluechips, ICICI Bank rose 3 percent, while Larsen & Toubro ended up 1.9 percent. Among the decliners, Bharti Airtel fell 1.5 percent on worries over Reliance Jio's telecom rollout and the company's foreign currency debt, traders said.
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