Indian shares rose 0.59 percent Friday, in line with regional markets and ahead of key US economic data later in the day, dealers said. The benchmark 30-share Sensex index rose 94.38 points to 16,158.28. Buying sentiment remained positive after India's Congress government on Thursday announced a boost to its disinvestment plans, saying all state-run companies now listed must have a minimum 10-percent public share-holding.
Proceeds from the sale of stakes in state-run companies would be used to fund social programmes, helping ease pressure on the fiscal deficit, the government said. Stocks of several state-run companies rose on Friday, reacting to the move.
"The markets were positive, led by the cabinet decision to list profit-making PSUs (public sector undertakings)," said Alex Mathews, head of research with Geojit BNP Paribas Financial Services. Indian share prices are up over 67 percent for the year, buoyed by domestic and international economic data pointing to signs of a recovery.
Gainers led losers 1,944 to 780 on turnover of 59.97 billion rupees (1.28 billion dollars). MMTC rose 6,024.45 rupees or 20 percent to 36,146.85 while lignite mining firm Neyveli Lignite rose 4.4 rupees or 3.36 percent to 135.4. Hindustan Copper was up 23.3 rupees or 10 percent to 256.35. Tata Steel, was up 14.95 rupees or 3.08 percent to 499.7, after the company on Friday said steel sales from Indian operations in October rose 38 percent, to 462,000 tonnes, from a year earlier.