India's NSE index rose about 2 percent on Friday as software services exporters such as Infosys Ltd and drug makers including Sun Pharma Ltd surged due to a weaker rupee. The broader NSE index rose 1.87 percent to 8,114.30, and advanced 0.5 percent for the week. The benchmark BSE index climbed 1.76 percent to 26,316.34, posting its biggest single-day percentage gain since October 18, and a weekly gain of 0.6 percent.
Both indexes posted their first weekly gain in five. The rupee rebounded to 68.46 per dollar from a record low of 68.8650 hit in the previous session after heavy intervention by the central bank in the morning, though traders said they expected the local currency to remain under pressure due to a rally in the greenback. Sentiment was also boosted as Asian shares advanced, while low roll-overs at the expiry of monthly derivatives on Thursday spurred more buying in cash markets.
However, both the NSE and the BSE indexes were headed for a flat finish for the week after shedding about 2.5 percent each in the previous week, amid continued worries about the impact of demonetisation on economic growth. Anand James, chief market strategist at Geojit BNP Paribas Financial Services, said he expected markets would remain under pressure in the near term.
"Significant buying was expected today after derivatives rollover figures were the least in last three to four months," he said. IT stocks accounted for over half of the NSE index's gains as Infosys and Tata Consultancy Services Ltd extended gains on the rupee's weakness. Infosys rose as much as 5.9 percent, while TCS climbed up to 4.6 percent.
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