Indian shares hit their highest in 2-1/2 months on Friday and posted their third consecutive weekly gain given a Greece default is seen as factored in, while better-than-expected progress of the monsoon also helped sentiment. Among gainers, HDFC Bank Ltd rose 1.5 percent on relative valuations, while drugmaker Lupin Ltd rose 1.7 percent after an acquisition in Russia. The NSE index rose 0.47 percent to end at 8,484.90, after earlier hitting its highest level since April 23. It advanced 1.2 percent for the week.
The BSE index rose 0.53 percent and closed at 28,092.79, after earlier hitting its highest level since April 20. It gained 1 percent for the week. Local shares are also headed for a third consecutive weekly gain on value buying by domestic investors with a Greece default already factored in, while better-than-expected progress of the monsoon also helped sentiment.
April-June earnings, expected to begin on a subdued note with some disappointment from IT companies, could be the next key trigger. "June-quarter would only see a marginal improvement on a sequential basis as seen in core sector growth and tax collections," said G. Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm. Earnings would be led by private banks and capital goods, he added. Rains for the 2015 monsoon season so far were 13 percent above normal at 194.6 millimetres, easing concerns that food inflation will quicken in Asia's third-largest economy.
However, Asian shares fell as Chinese stocks extended their plunge and growing caution ahead of Greece's referendum prompted investors to cut risky bets, while disappointing US employment data weighed on the dollar. HDFC Bank rose 1.1 percent and was among the top gainers on the broader NSE index. Lupin rose 1.8 percent after it acquired pharmaceutical company Biocom in Russia. Value-buying was also seen in beaten-down software stocks. Tata Consultancy Services rose 0.6 percent, while Infosys was up 0.4 percent.