Indian shares rose more than 1 percent on Friday to notch up their biggest daily gain in almost four weeks after the Bank of England's stimulus plan lifted markets world-wide, while the passage of the Goods and Services Tax boosted sentiment. The broader NSE index climbed 1.54 percent to 8,683.15 points. It rose 0.52 percent on the week, posting a second consecutive weekly gain. The benchmark BSE index ended up 1.31 percent at 28,078.35 points, marking a weekly gain of 0.09 percent.
Both indexes recorded their biggest daily percentage gains since July 11. Sentiment remained positive supported by the passage of India's long-awaited "game-changing" Goods and Services Tax (GST) bill on Wednesday, though gains on Thursday have been tempered by concerns about the amount of work needed to bring the reforms into reality. "The trigger of GST has now gone by and one can only judge the implications of the bill once the (tax) rates are announced, which should take two to three months," said Saurabh Jain, assistant vice president of research at SMC Global Securities.
"Markets at this point are only reacting to the fact that the bill has been passed, ignoring the implications for now." The broader NSE index rose 1.1 percent, and was headed for a 0.06 percent gain for the week. Banks were among the leading gainers with ICICI Bank rising 2.8 percent and Axis Bank gaining 3.4 percent. Meanwhile, Suzlon Energy Ltd shares rose as much as 8.3 percent after its chairman said the company would exit debt restructuring by March 2017.
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