Indian shares rose more than 1 percent on Friday, posting their third successive weekly gain, as investors turned more positive on risk assets following the dovish stance by global central banks. The benchmark BSE index rose 1.12 percent to end at 24,952.74, while the broader NSE index ended up 1.22 percent at 7,604.35. Both the indexes have gained about 1 percent this week.
Foreign investors have bought a net $1.77 billion of shares so far in March, versus this year's outflows of $1.1 billion. Analysts expect the Reserve Bank of India to cut interest rates by 25 basis points at its policy review on April 5 after data on Monday showed inflation easing more than expected in February. "Its time for the RBI now to announce a rate cut after global central banks announcements and that would bring in more flows into our market," said K K Mital, head-portfolio management services at Globe Capital Market.
During midday trade, bluechips, which are heavily owned by foreign investors were among the leading gainers, with Infosys and State Bank of India up 1 percent each. LT Foods, maker of "Daawat" brand of rice, rose 8 percent after the company agreed to buy branded rice business of Hindustan Unilever for 205 million rupees ($3.1 million). Miner NMDC gained 1.5 percent ahead of a surprise board meeting on March 19 to consider a second interim dividend. Software maker Tata Consultancy Services rose 2.4 percent following a meeting with analysts on digital business.
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