The BSE Midcap and Smallcap indices gained 0.6 percent and 1 percent, respectively as about 1635 shares advanced against 1173 declining shares on the exchange.
Equity benchmarks ended rangebound session on a flat note Friday but retained weekly gain. Investors awaited RBI policy and corporate earnings due next week, after digesting Union Budget. They also maintained caution ahead of assembly elections in five states, starting with Punjab on Saturday.
The 30-share BSE Sensex was up 13.91 points at 28240.52 and the 50-share NSE Nifty rose 6.70 points to 8740.95 (the highest closing level since October 5, 2016), continuing uptrend for third consecutive session.
"RBIs monetary policy next week is in the limelight with the expectation of a rate cut given the governments prudence to the fiscal deficit path," Vinod Nair of Geojit BNP Paribas Financial Services says.
Sandeep Bhatia of Macquarie Securities Group also expects the Reserve Bank of India to announce a rate cut next week. The prospect of a rate cut should be buoyed by the fact that the rupee had been faring better than other currencies in Asia, he feels.
He believes right now is a good time to buy as 2017 could well be a headline year for flows into mutual funds.
The broader markets outperformed benchmarks for second consecutive session. The BSE Midcap and Smallcap indices gained 0.6 percent and 1 percent, respectively as about 1635 shares advanced against 1173 declining shares on the exchange.
For the week, the Sensex surged 1.2 percent and Nifty gained 1.1 percent while Nifty Midcap rallied 2.5 percent.
BSE, the oldest stock exchange, saw a strong debut today. The stock closed at Rs 1,069.20, up 32.66 percent over issue price of Rs 806 on the National Stock Exchange.
Nifty PSU Bank outperformed other indices, up 3 percent followed by Pharma and IT with 1-1.5 percent upside.
Dr Reddy's Labs was up 1.5 percent ahead of third quarter results on Saturday. A CNBC-TV18 poll expects profit to fall 37 percent and operating income to dip 30 percent YoY.
Ahead of earnings next week, Bank of Baroda, PNB, SBI, Coal India, BHEL and Cipla gained 2-5 percent. M&M, Tata Steel, NTPC, Hero Motocorp, Lupin, Cairn India, Aurobindo Pharma and Tata Power will also announce results next week.
However, ICICI Bank, Tata Motors, Reliance Industries and Tata Steel were down 1-1.6 percent.
In broader space, Sun TV Network was the star performer, up 24 percent after the special 2G court acquitted Maran brothers and the company in the Aircel-Maxis case. Analysts say key overhang is removed but uncertainty remains on core fundamentals like advertising revenue growth.
Jindal Steel rallied 6 percent as CNBC-TV18 reports quoting agencies that the company is in talks to sell power plant for over USD 1.5 billion.
Granules India shares surged 10 percent as its Gagillapur unit completed reinspection by Portugal Regulator, INFARMED. Strides Shasun climbed 10.55 percent on stellar earnings performance and after the company decided to demerged commodity API business into new entity.
SeQuent Scientific gained 11.88 percent as the company will divest women healthcare business. Strides Shasun will merge its API business with the company.
Ajmera Realty, SREI Infrastructure and Glenmark Pharma shares rose 4-6 percent after strong earnings.
European stocks were higher ahead of the publication of the latest nonfarm payrolls in the US and a European summit, where leaders are likely to discuss the new US administration. France's CAC, Germany's DAX and Britain's FTSE were up 0.3-0.9 percent at the time of writing this article.The Great Diwali Discount!
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