Indian shares edged up to close a wee bit higher, snapping a three-session slide, as bluechips such as ITC gained, although broader advances were capped by foreign investors turning net sellers amid caution ahead of key inflation data due out later on Friday. Overseas investors sold stock futures worth $84 million on Thursday, marking a second consecutive session of outflows, according to exchange and regulatory data, on concern the US Federal Reserve may raise rates sooner than expected.
Foreign investors have been key drivers of India's shares this year with a net $14.1 billion in purchases so far this year. The sustained inflow helped both the broader NSE as well as benchmark BSE indexes post their latest record highs on Monday, and mild gains for the week. Analysts said global factors will be key, with the focus also shifting to economic data, with the Reserve Bank of India too set to review its monetary policy stance on September 30.
"We are seeing buyers coming at every decline. A lot of money, which was waiting in the sidelines is entering the market. The rally is expanding into all sectors and this is the perfect demonstration of how a bull market will function," said Jagannadham Thunuguntla, head of research and chief strategist at SMC Global Securities Ltd. "However, investors need to be cautious as there could be mistakes in euphoria."
The BSE index closed 0.24 percent higher at 27,061.04 on Friday. It has risen 0.13 percent in the week to post its sixth consecutive week of gains. The NSE index also ended up 0.24 percent to close at 8,105.50, adding 0.23 percent through the week. Bluechips led gainers after recovering from recent falls. ITC closed 1.3 percent higher on value-buying after falling 2 percent over the past two sessions on reports of an increase in public smoking fines and a likely ban on cigarettes sold loose, or outside packs.
Shares of Maruti Suzuki gained 1.9 percent after the company's chairman said the auto maker expects double-digit sales growth this year. Shares in Tata Motors closed up 0.6 percent after Macquarie Securities raised the price target of the stock, saying it expects earnings to double over three years due to improved sales at its overseas Jaguar Land Rover unit.
Among the laggards, Sun Pharmaceuticals Industries ended 2 percent lower, falling for the second consecutive day, after its unit Taro Pharmaceutical Industries recalled two lots of its Warfarin sodium tablets, prescribed to prevent blood clots, on September 2, according to the US Food and Drug Administration. Jaiprakash Associates Ltd closed down 2.9 percent after Goldman Sachs downgraded the stock to "neutral" from "buy" and removed it from its Asia Pacific buy list citing uncertainty after one of its promoters sold a 1.45-percent stake in the company.
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