Indian shares edged higher for a fifth consecutive session on Friday, marking their best week in over three months, as investors expect a second term for the incumbent government. The benchmark BSE index closed up 0.71 percent at 38,024.32, ending the week 3.7 percent higher.
The broader NSE index advanced 0.74 percent to 11,426.85, gaining 3.5 percent for the week. Both indexes posted their best weekly gain since Nov. 30. Both indexes rose for a fifth straight session and were poised for a weekly gain of 3.5 percent. India will hold a general election in seven stages starting on April 11 and about 900 million citizens will be eligible to vote in the mammoth exercise lasting over a month.
"The recent rally, which has taken place post consolidation of four months, was pending and is likely to stay... We are likely to breach the (NSE index) peak of 11,760 in the short term," said Pritesh Mehta, senior vice president, Yes Securities. Financials drove the market higher, with the Nifty Bank index up 1.4 percent.
Kotak Mahindra Bank was the top percentage gainer on the NSE index with a rise of 4 percent. IT stocks gained, with the Nifty IT index up 0.9 percent. Mid-caps, which have returned to the limelight on attractive valuations, rose with the Nifty Mid-cap 100 index trading 0.5 percent higher. Bharti Airtel Ltd dropped as much as 2.63 percent after Jefferies downgraded the stock to "underperform" from "hold" and cut its price target to 270 rupees from 280 rupees.
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