Indian shares surge to record close

Indian shares jumped to record closing highs on Friday, driven by gains in heavyweight ITC Ltd on the back of strong quarterly results, while banks extended rally after lenders lined up to enrol for a scheme for faster bad-loan resolution. The benchmark BSE index closed up 0.95 percent at 37,336.85 after hitting a record high for a fourth straight session.
The broader NSE index ended 0.99 percent higher at 11,278.35 after hitting an all-time high of 11,283.40. For the week, the NSE index gained 2.44 percent, its biggest gain since the week ending March 17, 2017. The Nifty Bank index climbed to its highest close at 27,634.40 while the public sector bank index gained 10.4 percent in the week.
Reliance Industries Ltd closed 1.73 percent higher while ICICI Bank ended 2.64 percent firmer ahead of quarterly results later in the day. ITC, the country's biggest cigarette maker, surged to a year-high after June-quarter profit beat expectations late on Thursday. ITC accounted for about a quarter of the broader NSE index's gains.
Bank shares extended gains with the index of state-run bank stocks rising 1.4 percent. The index rose 7.9 percent in the last three sessions, after lenders lined up to enrol for a scheme for faster bad-loan resolution.
Markets will now turn focus on the central bank policy meet next Wednesday.
"Markets won't necessarily react negatively if there is a rate hike with positive commentary from RBI," said Anita Gandhi, whole-time director at Arihant Capital Markets.
"With good monsoon (rains) and strong corporate results, expect the market to continue its bullish trend with upside of another 100/150 points on Nifty levels in the near term."
According to a Thomson Reuters poll of 63 economists, 37 said the RBI will raise rates again in August and 22 respondents said the next rate hike would come by end-2018 or in the January-March quarter next year. Reliance Industries Ltd was also among the top contributors to the NSE index ahead of its quarterly results later in the day. The oil-to-retail conglomerate will also report results of its telecom arm Reliance Jio.
Telecom giant Bharti Airtel Ltd hit a three-week high after posting a surprise first-quarter profit on Thursday.
Hindalco Industries Ltd gained 6.9 percent after the company confirmed acquisition of US aluminium processor Aleris Corp for $2.6 billion by its Novelis Inc unit. Lender ICICI Bank Ltd was up 1.6 percent ahead of its quarterly results later in the day.